How to buy a luxury home for 3 1/2% down! Episode #258

Todd: Hello! Welcome to Todd Miller TV. Joined here today with Troy Weatherly with Guaranteed Rate Mortgage and, Thanks man for being here.

Troy: How you doing?

Todd: Okay. I was doing an MLS search and I found some properties that were at one point had been worth over $1million. And I’ll give you a brief description of the properties. Over 4,000 sq.ft., on a golf course, highly upgraded, granite counter tops, spiral staircases, like guard gated community, like you have to go through a guard who physically stands there and checks the people that go in. Okay? At one point worth over $1million, I think everyone in the world would call that a Luxury home.

Troy: Absolutely.

Todd: Okay. And I looked at the purchase prices on the what these are listed for, and some of them are listed for roughly $400,000 today. So these are Luxury homes and there is a way that very easy to get these for as little as 3.5% down payment and you could just basically/like how would you do that? Like a luxury home, 3.5% down?

Troy: Sure, well FHA’s the way to go in that situation; because FHA’s County Loan Limit is as high as $400,000.

Todd: Okay.

Troy: So a person can actually put after their 3.5% down payment can buy a house for about $415,000, have their down payment and bring them down to the County Loan Limit of $400,000 and finance that full $400,000 Loan under an FHA Loan.

Todd: Okay so, for $15,000 down, what’s the/what would the payment be? Like the monthly payment?

Troy: Sure. The great news is, FHA rates are low. So you’re gonna finance that money at about 3.5/3.375%. So your principal in interest payment is only gonna be about $1,750/month.

Todd: $1,750…… You know it’s funny ’cause some of these places is $4,000 a month rent. Like if you wanna rent them it’s $4,000/month. But you’re gonna live there for $1,750/month principle and interest.

Troy: That’s right!

Todd: That’s crazy!

Troy: Yeah! Buying for cheaper than you can rent.

Todd: Okay. Okay so, the first step when people come to us and want to do this we always send them to you because you do the pre-qual. So to get what you to figure out first of all, did you have like an idea of how much money they would have to make a month to be able to afford that $1,750/month payment?

Troy: Sure. It depends on the total debt to income ratio. So the rule of Thumb for an FHA Loan is a person’s gonna be cut out of it at about 55% debt to income ratio which means pretty much if their only debt is their mortgage payment, and maybe a few other credit cards or car payments they need to make double, a little more than double what their total amount of monthly debt’s going to be.

Todd: Okay. So they make $4,000 a month family income. This/they can probably afford that.

Troy: Yeah. They’d be very close.

Todd: So $4,000/month, make them basically $50,000 a year, they can afford to live Luxury home in Vegas on a golf course like some of these houses like Lake Las Vegas. And yeah, Lake Las Vegas is a little bit of ease but it’s beautiful out there.

Troy: It’s gorgeous!

Todd: Yeah! So if they like the first step is to call you, to get/find out if they/like what the loan limit is that they can borrow up to. Then they can figure out if they live in Southern Highlands in the Guard Gated neighborhood or Red Rock Country club or one of those.

Troy: Right.

Todd: What’s the first like how do they get in touch with you?

Troy: Sure! Call me directly on my cell 702-308-9821, or just shoot an e-mail at

Todd: Sweet man! That’s awesome!

Troy: Thank you!

Todd: Luxury home, 3.5% down, only here in Las Vegas, $1,700/month. I just can’t imagine why everybody is out there trying to grab one of these ridiculous houses. So anyway, that is my update for today and hope to see you on another video. Thanks!