The headline is not a typo, though sure… it’s a bit click bait-y (sorry!). I have a client right now using a VA loan to purchase a Santa Clarita home which has a benefit of ZERO down payment for our US Armed Force Veterans. It’s a wonderful loan program that our Veterans have earned!
One thing that can get overlooked is how expensive closing costs can be, even with ZERO down payment.
In this real life example, my client had to front $12,000 for their earnest money deposit (also called Good Faith Deposit). Once closing costs are figured out and added up, my clients deposit will just apply to their closing costs on this Santa Clarita home. In this case, my clients costs were going to be about $8,300. If that were the case, my client, after closing, would receive back approx $3,700 refunded from their deposit of $12,000. However… the lender my client is using, provided a lender credit, which brought closing costs down to $5,300 approx.
After some negotiating, I was able to secure a $4,500 credit from the seller to my buyer – yes even in THIS seller’s market! That credit from the seller will apply against my clients new closing costs of approx $5,300. This means… the left over closing costs to be paid by my client are JUST $800 (approx). Now, since my clients $12,000 earnest money deposit of $12,000 is sitting in escrow…. this means that my clients AFTER closing refund would be about $11,200.
If we want to get a bit more detailed, my client did have an out of pocket expense of the home inspection, two of them in-fact, that totaled about $600.
This means my client is moving into their VERY first home in Santa Clarita, a PURCHASE, for about $1,400 total, of which only $800 approx was for closing costs. While the home inspection(s) was optional…. you’d be crazy to not get a home inspection on any home purchase you ever take part in.
Here’s a 4 min video I did on this topic over at my local Santa Clarita Real Estate Youtube channel…
If you’re in the market to use a VA loan for your home purchase in Santa Clarita I’d love to help you. If you aren’t a Veteran and don’t qualify for a VA loan, there are other down payment programs available to you. I’m here to walk you through that process along with my lender partners.
Reach out to me at 661-373-2374
Book an appt with me easily and online over here:
Robert Mickalson
Mickalson Group
Keller Williams VIP Properties
CA DRE #01313126
