NEW RELEASE: Buying a Home Will NEVER Look The Same!

Added: 2026-05-06

[00:00:00]You can put away your cash and stop saving your money. What I'm about to share with you is going to benefit you greatly. It's going to save you thousands of dollars. It's going to prevent a whole lot of stress. And most importantly, it's going to give you an opportunity to purchase a house that you likely never knew existed. The exciting thing is is you don't need a crazy high credit score. You don't need a whole lot of money. In fact, all you need to buy a house just like this one is $1,000 total out of pocket. I'm going to give you the complete details. Let's jump in. You see, there are two ways to purchase a house with minimum out of pocket. The first one is USDA. You see, the United States government has loan options for people what they consider to be lowincome earners. And those lowincome earners, they say you can buy a house if you're in a rural or suburban area with say 35,000 people or less within the city or the county. Now, the way this works is they're going to give you a loan for 100% of the appraised value.

[00:01:00]Now, how that works is the bank, if they own the house, they're going to have it appraised. The homeowner, they own the house, they're going to have it valued, they're going to put on the market.

[00:01:09]You're going to make an offer to purchase that house. The appraiser has to come out and and justify that the value is there so you don't overspend and the lenders don't over lend. Now, how it works as far as 100% is your credit requirement, as I'd mentioned, you don't have to have a crazy high credit score. You can't be delinquent on anything. You can't have 30, 60, 90-day late. You can't be uh within a bankruptcy within the last two years.

[00:01:33]However, if you file bankruptcy and your discharge date is two years out, you can actually purchase a house this way.

[00:01:40]However, your credit score needs to be at a certain point, and that certain point isn't a bad thing. It has to be at 620 or higher. So, if you're 620 or higher in your credit score, then you're good to go to look into being approved for one of these loans. Like I mentioned to you, there's two loans. This one is USDA. Now, USDA has made some changes.

[00:02:01]It's good for some, not so good for others. I'll address those in just a second. Now, as far as your earnings, they do put a cap because this is a governmentbacked program. They ensure these loans. You do have to pay private mortgage insurance, which a quick lesson on that. It's private mortgage insurance is just insurance in case you default on the loan. And they put a insurance policy on the loan for the house that you're borrowing money on. And you pay the monthly premium. It's not crazy expensive. I give you a prime example.

[00:02:35]On a $300,000 house, it's going to run you around $200 a month if you did a USDA loan. Now, a lot of questions that people may be asking is, "Wayne, what is the house limit?" There's no home limit, which is a really cool thing. However, you are limited on your income. Now, if you make less than $119,400, I believe it is $1194.

[00:03:01]If you're a household of one to four, so if you're single, then you're good. You make less than $119,000.

[00:03:10]If you're a married couple, if your partners, if you're it doesn't really matter if you're engaged, you don't have to be married or anything like this. Like, but I can tell you another question that people would ask and you know the answer right now, and that is, can I buy it and use it as an investment property? No, you cannot. If you do a USDA loan, it has to be your personal residence. But think about this. I remember buying my first house, man, and I had to save money. I had to scrape up. I had to sell some cars. I had to make some wheeling and dealing and extra cash to come up with money.

[00:03:43]And that was a $80,000 $79,500 house 33 years ago. Now, you can purchase a house and it literally cost you no money out of pocket. However, there's a few key points that you need to know before you jump into this thing. And those key points are you have to tell your lender you want to do a USDA loan. You also have to tell your lender that you're limited on cash down payment. limited on funds. And listen, you can have a little bit of money in the bank, but if you've got, you know, 50, 60, $80, $100,000, they're going to question that because they're going to look at how much money you have in the bank. These are for low income earners. But a lot of people out there, if you agree, give me a thumbs up. You may have 10, $15,000, and you think, well, listen, I could buy a house, but if I do an FHA loan, I'm going to need three and a half% down.

[00:04:30]And if I pay my own closing cost and I'm up over 112,000 for a $200,000 house.

[00:04:36]Listen, with a USDA loan, it follows under the same guidelines as FHA. The seller can pay all of your closing costs, which run three and a half% pretty much everywhere in the country.

[00:04:47]It does vary in different cities, different counties, different parishes, because some areas, and I'll address this here in just a second and share with you the importance of a title policy. You always want to make sure you have a title policy. Anytime you get a loan, the lender is going to require it.

[00:05:02]You want make sure you have simultaneous issue. Now, in some areas, the seller pays for the title policy. And in some areas, the buyer pays for the title policy. Give you a prime example. If you're in New Orleans, Louisiana, anywhere around here, Louisiana, the buyer pays for own title policy. If you're in Middle Tennessee, Nashville, Davidson County, where I was born and raised, the seller pays for the title policy. It really comes down to it though, nothing is set in stone when it comes to real estate. You always have to know everything is negotiable. And here's a few other tips I'm going to share with you on how you can negotiate the best deal. So, I do have a quick question, a favor to ask if you will. Do you like these videos? If so, give me a thumbs up. And do me a favor, leave a comment. What is it about the videos that you like? A lot of people say, "Wayne, I like how you're down to earth.

[00:05:49]I like how you seem honest. I like how you seem sincere." Whatever it may be.

[00:05:53]And listen, if there's changes that need to be made, you're not going to hurt my feelings because I want to make these videos the best there is. Right now, across all social platforms, I'm about 1.5 million followers. And I want it to be a 100 million. Why? Because people need to know about real estate. It I seen a gentleman the other day, I was at a department store. And that's another thing, too. If you ever see me out, it doesn't matter where you are. If I'm in Nashville, if I'm in Las Vegas, if I'm in Texas, if I'm in if I'm in, it doesn't matter if you're here locally in my town, always say hi. wave your hand because that lets me know we're getting the message out. We're getting the word out. I'm a big believer and you learn it and you master it and you teach it. Now, to jump in to something else that's really important question that you may ask is, Wayne, if I have to pay private mortgage insurance, how can I make that go away? The only way to get private mortgage insurance off of a USDA or an FHA loan is you have to refinance the house, which they do charge you to do that, and you have to pay that money upfront or they'll roll it into the financing. Now, typically that's going to run you probably around two to two and a half percent on a refi, but once you have 20% equity, you can have that removed. Now, that's why they they put 20% down. And the reason for that is this. They think if you have 20%, they know if you have 20% equity in a house and you just bought it for $300,000 and you just put 20% down, that's $60,000.

[00:07:20]They know the likelihood of you letting that home go to foreclosure if you can't afford your payment is very slim because there's a window of which people if you get laid off, lost a job, illness, whatever it may be that you realize and think, "Okay, I'm behind in my mortgage payment, but at least I have equity in the house. I can sell it, pull my cash out, pay off the loan, and I'm good to go." Otherwise, you have to pay private mortgage insurance. It's not too crazy expensive.

[00:07:46]However, it's important to know what USDA and FHA, it is absolutely on there forever. It does not go away. The only way to have that removed is to physically refinance into a conventional loan. You see, there's two major factors when it comes to buying a house that prevent people from buying a house. Most of the time, and you may agree, you may disagree. I'm good either way because you need to chime in because prices of homes have gotten crazy expensive. But I'll share with you here in just a second why they have become so expensive. The average price of a home right now, pre-existing, new, it doesn't matter. The average price of a pre-existing home, I know for a fact, is a half a million dollars. But here's what you have to consider. It's cash down payment. It's the hardest thing for people to save and come up with that cash to be able to have the down payment. Well, this is an option for you if you're a household of one to four.

[00:08:38]Now, if you're over a household of of for say you're more than four, then that limit bumps up to $158,000.

[00:08:48]So, if you're a household and you've got three kids and it's you and your spouse, then you can actually get bumped up to a higher tier, which means you can afford more of a home. Now, keep in mind, you have to qualify, you have to be approved, and you have to have proof of income. You have to have two years of tax returns. You can be self-employed.

[00:09:09]They just want to make sure that you've got tax returns. You've paid your taxes.

[00:09:13]And that's basically how they verify your income. Now, a lot of people say, "Well, Wayne, I I'm not in the same line of work or I change jobs." And this is a really good one. We get a we get this question a lot. And listen, if you want help purchasing a house this way, you can go to contactwne.com, shoot us your information. We reach back out to you. But we've got lenders and agents all around the country that are very very experienced in doing these loan programs and these and these, you know, helping when you buy these houses.

[00:09:40]Now, what it comes down to is down payment. People have a hard time coming up with a down payment. The other's fear. And so, it's just fear of the unknown. But you have to understand this. If you buy this house for $200,000 a day and it appreciates 4% per year, because that's the average appreciation of real estate literally for decades.

[00:09:59]I'm talking 50, 60, 100 years, we've seen an average of 4% appreciation. And I'll share with you why homes have become so expensive. People have really seen some appreciation here in just a second. But the reason why we see the 4% is that's a good healthy market. That's what we want to see. And when we see that, you think about a house that's $200,000 now. Well, what's 2 * 4 is eight. Next year, the same time that house is going to be worth 208. So then it's going to then you're going to increase then you're going to have a 4% increase on 28,000 and then you're going to have another 4% increase the next year and the next year and the next year and the next year. You see when people buy houses and and you get them on a pretty good rate, another question that you may have is what is the interest rate? Well, the interest rate on a house like this with USDA right now it's running about six to six and a quarter percent. That's pretty much the prevailing rate. Now, if you have a super high credit score, you're in the high sevens, low 800s, you can get a little bit lower rate. However, if you're looking at that, you may want to consider an FHA or conventional loan.

[00:11:05]Now, if you do a conventional loan, it's going to cost you 5% down payment. A lot of people aren't aware. They think you got to put 10%, you got to put 20%.

[00:11:12]Listen, personally, I'd like my money to work for me. Cash is king. It's hard to come up with. And let me just put 5% down. That gets me in the house. Most importantly, you have to qualify. You have to have debt to income. They're going to look at your income. They're going to look at your money coming in.

[00:11:27]They're going to look at your debt.

[00:11:28]They're going to look at all that. And they're going to make sure that you can actually afford to pay the payment each month based on the ratios. Another is FHA. FHA, you need three and a half% to put down. However, there's another program with FHA, very similar to USDA.

[00:11:43]It doesn't cost you any money. Now, you may be thinking, why would I go FHA instead of just USDA? Well, let's kick back over. Remember the income limit.

[00:11:51]So, if you're a household of say you make $165,000, now please keep in mind that does vary per area. It does vary. So, it's not literally a line drawn in the sand of you make uh $119,000 because when you go into rural areas that may be out west like California, there's some areas out in California where the income tier is higher and they base it on a percentage of the local income bracketing. So, you may be out there and you may be at 212 if you're a family of five or more. It does vary. Now, another program you can do is FHA. FHA, you can do a loan with a 100%. So, if you make say $125,000 and it's just you yourself or you and your spouse or you and your two children, you can still do an FHA loan.

[00:12:43]You can do 100% down. And the reason why it's 100% loan, not 100% down. Correct myself. It's 100% loan because they're giving you money for the down payment in the form of a loan and then they're also giving you money for the actual purchase of the house. So, the way that works is you now will have a loan, one mortgage payment for the actual loan for the home, and then two, you'll have a loan for the down payment. The seller pays your closing cost, and you just bought a home for very little out of pocket. Now, when I say very little, and I say $1,000, I always tell people you need at least a $500 deposit. Anything that's under 300,000, you want to put at least $500 down on. And sometimes the seller may request that you put down more. Once again, everything in real estate is negotiable. Absolutely everything. The other is for your home inspection. I always tell folks the appraisal is totally different from a home inspection. A home inspection is where they go completely through the house and make sure everything's working to its intended function and nothing is broken.

[00:13:49]Right? When you do an appraisal, all the appraiser is doing is coming out, measuring the house, verifying the square footage, taking pictures up and down. They're looking at three most comparable properties compared to the subject property you're purchasing within a threem radius of that home that has physically closed and sold. It's proof that someone bought it within the last 6 months. And once they do that, they verify the value of the home. So once again, you don't overspend and the banks don't over lend. Now, I want to talk about how and why home prices have become so expensive all around the country. They have really gone outrageous. I'm from Nashville, Tennessee, and the home prices in Nashville, Tennessee just blow me away.

[00:14:34]Especially if you're in Franklin, Brentwood area, Williamson County. Geez, alive. It's kind of nuts down there. But here's how this happened. It happened because they kept money too cheap for too long. You see, for 14 years, the Federal Reserve didn't raise the interest rates over 5 and a quarter%.

[00:14:51]Think about that for 14 years. So, what happened is years went by and years went by and years went by. People bought houses. Not only did they stay under five and a quarter, but there may be people like yourself if you're watching this video and you're probably thinking, "Dude, I got a 2.9. I bought a house personally, my loan 15 years was 2.9%."

[00:15:14]Like that's kind of unheard of. It's like historical lows. And that's why we see the home prices going up. That's why we also see a housing crash. That's not going to happen because people have stayed in their homes longer than ever before. In the history, people are staying in their homes like nine years.

[00:15:33]When I first got in the real estate business 30 years ago, people were moving every four to five years. Now they're staying in their home nine plus years. Plus, they've got a crazy low interest rate. Think about that. When your interest rate is low, you're paying more money towards the principal, right?

[00:15:46]And then prices are going up. So, there's more equity within a home now than ever before in the history of this country. Now, a concern and a topic on everyone's mind, and people ask me because they're like, Wayne, you do these videos, you do all this research, you've been in the real estate business for a long time, what's the rates going to do? Just really varies. Right now, we went to war. And when we're doing that, things get crazy. Gas prices go up. a huge factor in the reason why we had a housing crash. It wasn't just because they were giving out money through ninja loans. No income, no job, no asset. Like it was really kind of crazy. Plus, no one really talks about the mortgage fraud that went on. There were so many documents that were forged and changed where people literally their income was incorrect and they were giving out false loans. But the other was fuel prices, gas prices. Everything's put on a plane, put on a train, put on a truck, put on a boat. They all burn lots and lots of fuel. I mean, think about that. You look at the average 18 weer. Most people aren't aware of this. I used to work at Peterbuilt Motors years ago. I built Peterbuilt trucks in my early early 20s.

[00:16:53]Those trucks get about four miles per gallon. And the average truck takes over $30,000 a year just in fuel. And so you can see how when you go up a dollar per gallon, how that's costing each truck 7 810 12,000 more. That's just a truck. I mean, you see it in airline cost, right?

[00:17:12]Tickets go up. But it's even more so than that because people forget that plastic that's in everything. It's in the phone. It's in your watch. It's on your glasses. It's in everything.

[00:17:27]Everything. Water bottles. It's all a byproduct of crude oil. So, guess what?

[00:17:34]We've seen a recession, if you will, over the last two and a half years. In other words, people have receded to purchase houses because the interest rates took a huge jump. In 2023, they took a jump. April 2023, rates were 5 and a half. By October 2023, rates were 8%. That put the brakes on the housing market. And it's taken a while for people to come around and go, geez, a lot of man, now the houses, not only do they cost more, but the payment's going to be more. But this is what I suggest and tell everybody to do. Do a mortgage payment calculator. They have them on Zillow. We have them on our site at wayneer.com. We they're out there. You could just Google mortgage payment calculator. What's really cool is you can put in where you want to be and it will calculate your city, your county taxes, and all that to give you a total payment. Now, I give you a good rule of thumb right now. For every for every $100,000 that you borrow, it's costing on average. This varies if you're way out west cuz taxes, property taxes are more expensive. If you're living in New Jersey, for example, the highest tax in the land when it comes to real estate, they're like 12 14%. So, this is not going to be the same there. But for every $100,000 that you borrow, you're looking at about $900 a month. So, a $300,000 house, take $900, multiply that by three, and that's pretty much what your payment is going to be. Now, there's something else I want to touch on I think you'll find very interesting and very helpful. If you're watching this and you're a veteran, it doesn't matter if you're active duty, you're retired, as long as you have an honorable discharge and you can show proof through your DD214 that yes, I was in the military. They verify that and you can purchase a house with a VA loan.

[00:19:18]The really cool thing about VAS, there's no private mortgage insurance. And the reason why is because the government actually guarantees those loans. And since they guarantee those loans, the lenders don't have to have private mortgage insurance. However, there is an upfront funding fee, but the seller can pay that for you. So, I can't tell you how many houses, and listen, they're one of the easiest loans to do. So, if you're a veteran or know someone who is a friend, family, co-orker, whatever, share this video with them because they may be missing out on a huge opportunity to purchase a house just like this one that cost them no money out of pocket.

[00:19:54]So, listen, thank you for watching. I'm most appreciative. If there's anything else you want to hear or see, I've even thought about doing like live and podcast and and literally sitting and doing questions with insurance people.

[00:20:06]And if that's something that you think would be interesting for yourself or someone that you may know, please chime in. Leave your comment. Until next time, thank you and may God bless you and your family.