$0 DOWN MORTGAGES ARE BACK (Get Paid To Buy A Home)

The YouTube Creator Academy:

The White House Buyer and Seller Proposal:

-The Mortgage Relief Credit
Congress was called to pass a mortgage relief credit “that would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years. This is the equivalent of reducing the mortgage rate by more than 1.5 percentage points for two years on the median home, and will help more than 3.5 million middle-class families purchase their first home over the next two years.”

-Seller Relief Credit
In this case, sellers would receive a one-year tax credit of up to $10,000 to middle-class families who sell their starter home, defined as homes below the area median home price in the county, to another owner-occupant. This proposal is estimated to help nearly 3 million families.

-Down Payment Assistance
“The President continues to call on Congress to provide up to $25,000 in down payment assistance to first-generation homebuyers whose families haven’t benefited from the generational wealth building associated with homeownership. This proposal is estimated to help 400,000 families purchase their first home.”

-Lower Refinancing Costs
They'd like to introduce a pilot program that would waive “The requirement for lender’s title insurance on certain refinances. This would save thousands of homeowners up to $1500, and an average of $750, and the lower upfront fees will unlock substantial savings for homeowners as mortgage rates continue to fall and more homeowners are able to refinance.”

--Adding More Supply
Under this proposal, they would “pass legislation to build and renovate more than 2 million homes, which would close the housing supply gap and lower housing costs for renters and homeowners." In addition to that, there will be a $20 billion dollar fund for housing expansion (this would help “support the construction of affordable multifamily rental units; incentivize local actions to remove unnecessary barriers to housing development; pilot innovative models to increase the production of affordable and workforce rental housing; and spur the construction of new starter homes for middle-class families.")

-Drive Down Rent Prices
The first effort would ban corporate landlords who use algorithms to determine the highest rent they could generate, based on nearby properties that the algorithm also monitors. Landlords love it because it leaves emotion out of the mix - but others say that it aggregates competitor data for the greater profit of the owners - and, that’s very expensive for tenants.

The second would eliminate “junk fees” throughout the rental process, including “convenience fees” to pay rent online, and fees charged to sort mail or collect trash. They argue that “these fees are often more than the actual cost of providing the service, or are added onto rents to cover services that renters assume are included—or that they don’t even want.”

Let me know what you think of these initiatives, if you believe they'll pass, if they'll make a noticeable difference in the housing market, and if this might help. I'll be reading all the comments, so if you comment, I'll see it and do my best to respond (especially if you're actually reading this right now)

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*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.

[nicolasbenson]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[missinglinq]

10k credit on a home that is $300, 000 overvalued. That sounds like a recipe for disaster.

[ExpensivePizza]

Let's get this straight.. the government printed loads of money in 2020 which was followed by rising cost of living and housing prices. Then they raised interest rates to "fight inflation" making it even more unaffordable to buy homes. Now they're proposing to give more handouts to home buyers taken from tax payers and additional money printing.

[RoxasXIII]

As a single person in their mid 20s, owning a home without throwing myself into lifelong debt seems practically impossible. I've done what I was told: I did well in school and graduated with a STEM degree, but still graduated with $80k in debt. I have a good job and live well within my means, contribute to a roth IRA, paid off my car, make sizable payments towards my loan and very rarely go out. I've done everything I'm supposed to; so why does something like owning a home seem so far out of reach? Even if I save absolutely everything outside of required expenses, it'll take YEARS to save for a down payment on a home.

[Clone]

2008 called, they want their bad ideas back!

[ji-inroh]

The government is trying to increase demand while not doing anything for supply which is baffling.

[vjc]

If the average home is $400k, is it even a starter home? That 10k credit is a drop in the bucket...not enough to help.

[erccdang]

Property tax for residential land is insane to me.
you work your whole life to afford a down payment for a 20-30 year loan.
and even after you pay all that off you owe the state tens of thousands a year in perpetuity.
why do we put up with this?!?!?

[zzzenx]

You basically made my interest in finance. My whole life probably changed just because of your videos. Feels great to be so financially ahead at 21.

[anthonyreece]

2008 all over again. I was a Realtor back then and was blown away what the 0 money down was starting. We knew it was gonna get bad.

[tokenkingman]

A $10k credit will just raise the value of the home by $10k. The only solution is building more affordable houses and apartments. There is too much focus on McMansions and Luxury apartments. Also there are so many damn luxury apartments that aren't even luxury, they just advertise as such and then increase their rent.

[kkhodi]

This won't fix the insurance issue. Remember, if you have a mortgage, you need home owner's insurance. Insurance is becoming unavailable and/or unaffordable, especially in states like California.

[BakedGringo]

I’m a home builder in Florida and you are absolutely correct. There’s not enough profit in moderate to small houses for it to be worth the risk. And building houses is generally a high risk endeavor.
Everything is about money in relation to risk.
You’re spot on Graham, if home builders had less risk or more incentives we would build more starter homes.

[rm]

Housing is insane. Where we live we make too much to qualify for any of these programs, but make no where near to purchase a home even with 20% down unless we want to be house poor.

[nicod]

I agree with your ending statement. You need to incentivize low income and starter housing of any kind. House, condo, apartments, tiny homes, whatever. But it has to make sense to the developers before they are willing to build it. You can’t ask a company to go out of business because you need more housing. Help them, they will build more. It’s that simple.

[mikeshafer]

Lower down payments or even lower interest rates aren't the problem nowadays. The prices are just too damn high. I'm checking out property in Fort Lauderdale this week and I've seen a dozen properties today alone that were bought 1-2 years ago for something like $4M and the sellers are asking like $5.5M. In WHAT WORLD do you see appreciation like that? It doesn't make any sense.

[James-zylh]

Graham - the solution you propose of carrying a current mortgage with you to a new property is called “porting” a mortgage. Apparently it’s common in other countries but virtually non-existent in the US. I learned about it because I tried to see if it would be an option for my family. That would solve my issue as we need to upgrade to a better area, but it’s hard to justify leaving a 2.8% interest rate.

[kensmith]

Idea: -> Building your own house can potentially make home ownership possible for some folks in certain locations and situations (of course it would be too expensive in big cities, however in some suburbs and rural areas it might work if you own or can buy land/lot). Something to consider and look into for some people. Many states do not require a contractor license to build your own home. A general contractor license is easy to get if needed. I know a dozen people who have built their own homes over the years. I built mine recently, acting as the contractor and doing a minor amount of the work. Saved a ton of money, plus didn’t have to finance that additional cost for xx years. No one is born knowing how to build a house; you just have to learn how to do it and figure it out (talk to builders, read books, watch videos). Just a thought.

[red_panda]

This is the best video I've seen on this topic. You put in the effort and it shows. Nailed it on the solutions, I've been racking my brain on what the fix would be for this problem. This makes so much sense to me.

[Roughneck]

Nothing brings down prices quite like pumping even more Monopoly money into a low supply market.

I’ve said over and over again that we need to teach basic economics in schools but we might actually need to begin with DC and our government officials