The Real Estate Financial Planner Blueprint™
D-03 100% Stocks, 30% Savings, 3 Nomads 5% DP, Gifted DP
Purchased 
Typical Family Home - 5% DP, Gifted DP 1 Property
Bought in 
Month 3
We have a 
Rule that has you buying the Typical Family Home - 5% DP, Gifted DP 1 Property when your 
Account balance in the VTSMX with CAGR of 8.97% over 1871-2017 Account reaches $5,000 (which we adjust for inflation to be worth $5,024.69 in Month 3). The following is a chart showing the balance of VTSMX with CAGR of 8.97% over 1871-2017 Account from the start of the 
Scenario to Month 3 after we've adjusted for all the income and expenses for the entire month.
Nothing Down Financing
To purchase the Typical Family Home - 5% DP, Gifted DP 1 Property, we're assuming you're getting a nothing down loan. That means you don't need a down payment to buy this home.
As of the time of this writing (and loan programs do change from time to time), there are 3 sources of nothing down loan programs: USDA, VA and local lenders with special loan programs.
USDA
The USDA loan program is a nothing down program that allows you to buy a home, as an owner-occupant, with nothing down. The limitation is typically that you need to buy a property in a rural USDA eligible area. If you happen to live in a larger city, the chance of your home qualifying for a USDA loan is essentially zero. However, often there are cities near you that will qualify.
You can check to see if homes around you qualify for USDA by going directly to the USDA eligibility map:
USDA Eligibility Map
https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
VA
The VA loan program is a nothing down program that allows veterans or others with VA benefits to buy a home, as an owner-occupant, with nothing down. The limitation with VA loans is less about the property (although VA loans typically require a special type of appraisal that checks for health and safety issues on the property) and more about the person getting the loan having the VA benefits.
One of the nice things about VA loans is that you can use them to buy single family homes, but you can also use them to buy duplexes, triplexes or fourplexes as long as you are owner-occupying at least one of the units.
Local Lenders with Special Programs
Beyond the USDA and VA nothing down loan programs, the only other loan programs that I am aware of that allow you to buy a home with no down payment are the special local lending programs I've seen with local lenders. The loan programs I've seen typically are used to help buyers with great credit scores and solid employment, but who earn below the median income in an area, buy a home. For example, in my local market there are two lenders that offer these special nothing down loan programs to buy single family homes: KeyBank and Compass Bank.
You'll want to talk to your real estate broker and local lenders to find these types of special lenders in your local market if they are of interest to you.
Additional Traditional Financing Resources
Beyond talking to your own lender, we have some pretty extensive additional resources for financing properties including financing owner-occupant properties, Nomad™ Property properties and investment properties. Here are some of the classes we have that go over the financing in detail.
Amazing Financing Strategies for Real Estate Investors Class Recording https://RealEstateFinancialPlanner.com/amazing-financing-strategies-for-real-estate-investors/
Financing Classes https://RealEstateFinancialPlanner.com/financing-classes/
Creative Financing Resources
Of course, this discussion of nothing down loan programs specifically ignores an entire discourse on buying Properties with creative financing like getting owner financing and buying subject to the existing financing. For more information on buying Properties creatively, you can access the following additional resources.
Creative Financing 101 Class Recording https://RealEstateFinancialPlanner.com/creative-financing-101-2016-edition/
Owner Financing Class Recording https://RealEstateFinancialPlanner.com/owner-financing/
The total cost to close must also include the rent ready costs ($0) and closing costs ($0) minus any seller concessions ($0).
| Description | Amount |
|---|---|
| Down Payment | $0 |
| Rent Ready Costs | $0 |
| Closing Costs | $0 |
| Seller Concessions | $0 |
| Total Cost To Close: | $0 |
Since this is a Nomad™ Property, you are buying it, moving in and living there for at least a year before renting it.
You are moving into this property, so you are not collecting any rent on this property yet.
Return in Dollars + Reserves
| Property | Appreciation | Cash Flow | Debt Paydown | Cash Flow from Deprec.™ | +12 Mos Reserves @ 8% | RID+R12™ Total |
|---|---|---|---|---|---|---|
| Typical Family Home - 5% DP, Gifted DP 1* |
$10,576 | $0 | $5,042 | $0 | $1,864 | $17,482 |
| Totals: | $10,576 | $0 | $5,042 | $0 | $1,864 | $17,482 |
| * Denotes a property that had no rent for at least part of the period covered. | ||||||
Asset Allocation
How are assets allocated? Let's first look at this month.
Copy
Scenario into my Real Estate Financial Planner™ Software Account
Blueprint™ Menu of Sections
- Introduction
- Accounts
- Properties
- Rules
- Significant Events
- Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Bought New Dynamic Property Based On Rule Buy Property When Account Has Down Payment
- Achieved Financial Independence Goal
- Paid Off Mortgage
- Paid Off Mortgage
- Paid Off Mortgage
- Achieved Ideal Financial Independence Goal
- Final Month Summary
Reports