How do you do this? If you are one that stays up late at night, you have probably heard of people talking about this very program. Where they have people attending their seminars learning how to buy a home with nothing down. No down payment, no closing costs, with nothing, ZERO, out of the pocket expense.

Without a special grant program that is being offered in a particular city and without the home buyer having access to a "special loan program" like for veterans, they are selling you snake oil.

In some rural areas, a person may buy a property on the courthouse steps with precarious circumstances like a tax sale, or strange foreclosure - but those practices are very rare.

See - Santa Clarita home experts foreclosure article

In the Santa Clarita Valley, when you buy a regular re-sale home or a new construction home, you are going to be faced, as a home buyer with closing costs.

You may be able to get your down payment covered or at a ZERO amount, but closing costs have to get paid by someone.

Understanding closing costs

Things like commission, title fee's, escrow fees and a lender fee are what closing costs are made up of.

If you are a home buyer you don't have to pay the real estate agent's commission. Not even yours.

Your agent is getting paid by the seller, even if the home for sale is not their listing.

Buying a home with no down paymentSo hence the importance of you hiring your very own realtor that is able to be on your side 100% during the entire transaction. Including when you are buying a new home directly from a new home builder. Have your own trusted real estate agent take you, register you and get you what you want and a price you are willing to pay. Have your agent negotiate for you with the new home builder's agent. We do it all the time for our home buyers that want new homes in the Santa Clarita Valley and in other Southern California.

Closing costs for a home buyer are different than a home seller.

For a home buyer, they are not paying the real estate agent's commission. The home buyer is paying their loan officer to get them a home loan. They are paying their part of the title, their portion of escrow and their portion of the title insurance. These amounts vary but are typically between 1 and 3% of the purchase price.

Closing costs for a home seller are also different from the home buyer. 

A home seller will have to pay the agents commissions. That's both the agent for the home buyer and the home seller.

Hence it's totally advantageous for a home buyer to hire their own agent. This also applies to all the new home builder communities. If you want to buy a new home call me and I'll give you value and "FREE" assistance. These fee's vary between 5 and 8 percent of the purchase price.

To buy a Santa Clarita valley home there has to be a program or "other way" to pay those costs.

Can a lender increase a buyer's interest rate possibly to absorb those rates? Maybe

Can a real estate agent provide credits to cover some of those costs? Possibly

Are there grant programs and special incentives offered by some that may help to pay these fees? It depends

The issue I have is not about a person buying a home with nothing down. It is the misleading way in which it's talked about being able to happen after paying a fee to attend a course about how to buy a home with nothing down.

If you get involved in one of these programs, please contact me so I can best guide you. I'm Connor MacIvor with the Santa Clarita Home Experts.

Also, FYI - know this. The Santa Clarita Home Experts are Paris MacIvor CALDRE 01256647 and me, Connor MacIvor CALDRE 01238257. We have "facilitators" in place who assist with files etc, but we are the meat of the team and you will be dealing with Paris and me.