225: Meet the New Zero-Down Mortgage + Why Lumber Prices Are Dropping

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 13 June 2024

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

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Summary

Zero-down mortgages are back. That’s right. You can now get into a home with (potentially) zero dollars out-of-pocket. But wait…this is starting to sound a bit like 2008. Remember the fully-funded mortgages that didn’t require income verification? Are we back to the days of NINJA loans as homebuyers struggle with affordability, forcing them to take on zero-down loans? Not quite. We’ll explain why on this headlines show! This time, we’re talking about the new zero-down mortgage loan. But that’s not all. One crucial housing metric has exploded, and if you sell, BRRRR, or flip houses, this is one metric you MUST pay attention to. Remember back in 2021 when lumber prices were so high that you needed to take out a personal loan to buy a toothpick? The mahogany tables have turned as we bring some good news for new construction investors and home renovators. Lastly, we look overseas at the international housing markets that are seeing the biggest price drops and increases. We also share where we would invest abroad and whether or not we think these markets beat the good ol’ USA. Stick around for your latest housing market update on this headlines show! In This Episode We Cover New zero-down mortgage loans and whether they’ll lead to risky home purchases What you must know (and do) if you’re going to buy a home with low money down The one home price metric you should pay attention to when flipping, rehabbing, or buying new construction Good news for new builds and why lumber has finally returned to pre-pandemic price levels The international housing markets seeing the biggest price drops, and whether we’d buy there or not And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Henry's BiggerPockets Profile Henry's Instagram James' BiggerPockets Profile James' Instagram Kathy's BiggerPockets Profile Kathy's Instagram Property Manager Finder See Dave at BPCON2024 in Cancun! No Money Down Loans: How Do They REALLY Work? Zero-down mortgages are making a comeback A key home price metric has skyrocketed since 2019 Federal Reserve rate stagnation impacts wood products markets 3 International Locations Where Housing Prices Are Plummeting Post-Pandemic Jump to topic: (00:00) Intro (01:22) 0% Down Mortgages Return (14:13) Crucial Housing Metric JUMPS (20:41) Lumber Prices Stabilize (26:51) International Home Prices Drop Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-225 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You've probably heard of zero-down mortgages and thought that they were a thing of the past.
0:04.6	Well, they actually might be making a comeback.
0:07.8	Do you have any idea how much the price per square foot in the U.S. has grown since the pandemic?
0:13.5	Or what product is being hit hardest by interest rates staying high?
0:17.9	In today's show, we're covering all this.
0:25.5	Music interest rates staying high. In today's show, we're covering all this. Hey, everyone. This is Dave Meyer and welcome to On the Market. With me today is the whole panel.
0:31.2	We have Henry, James, and Kathy. And the whole crew being here means we have a headlines show for you.
0:37.1	This is a show where we
0:38.0	pull four headlines from the news cycle to discuss how they impact investors so you can make
0:42.8	the most informed investing decisions possible. In today's episode, we're talking about no money
0:49.0	down mortgages and their comeback maybe being problematic. We'll also talk about the skyrocketing of price per square foot and how that impacts
0:57.8	investors and how the lumber industry needs interest rates to go down really badly.
1:04.0	Last, we'll talk about the best places to invest internationally due to price drops.
1:08.8	Before we get into our headlines show, make sure to hit that follow button on Apple or Spotify to make sure you never miss an episode of On the Market.
1:16.8	Let's get into it.
1:22.6	All right.
1:23.3	The first of our four headlines today reads, a shady financial tool from the housing bubble era is making a comeback.
1:31.7	This story comes from CNN, and basically the point is the zero down mortgage is making a comeback.
1:38.7	A company called United Wholesale Mortgage rolled out a new program that allows first-time home buyers to secure their
1:44.4	purchase with no money down. You finance 97% of the mortgage and borrow 3% as a no interest rate
1:53.1	loan. However, upon the sale of the property or refinance, this 3% no interest loan is fully due.
1:59.6	How clever of them to come up with this. Now, Kathy,
	...

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