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never in my time since starting this channel have i gotten so many requests for one specific topic and that topic is the biden housing plan so today i'm gonna grant you your wish we're gonna dive in and unpack the biden housing plan and we're getting started right now [Music] [Applause] [Music] what is up everyone it's adam taylor of the relentless home group of exp realty here in baltimore hey if this is your first time to our channel and you're looking to learn all about baltimore great knows you're in the right spot we do videos about living here working here commuting sleeping here and most importantly getting out and enjoying everything this amazing city has to offer so that is the information that you're looking for look you gotta do me one favor and you gotta smash that subscribe button down below and don't forget to give the little bella jingle that way you're alerted every time we put out another video just like this one now right now i gotta be honest with you we are receiving so many phone calls text messages and emails from people looking to move or relocate right here to maryland and we absolutely love it so if you were thinking about making a move we need one thing from you and that's for you to reach out to us so please give us a call shoot us a text message send us an email or fan us down with a smoke signal however you need to get a hold of us we've got your back we're moving right here to baltimore or anywhere else in maryland today we're unpacking the biden housing plan completely now make sure you stick around to the end because in all honesty my friends i'm gonna go through and tell you exactly what i would do if i was eligible to use this program so make sure you stick around to the end so let's jump into it right now before we get started though and we're going to unpack this entire thing i want to challenge you to grab a pen and paper and take some notes as we go on through this but more importantly i'm going to ask you some thought-provoking questions in this video to really find out if this is going to be the best fit for you so we're going to look at the biden housing plan and we're also going to look at some other similar programs that are already in place in lieu of the buy housing plan now at the end of this video here's homework question number one all right what do you hope to gain from watching this video okay is it oh i know about this program or is it you really want to learn okay so let's jump in and look at that the question you really have to ask yourself is this why do i continue to seek out these programs is it because i'm a first time home buyer and this program is for me right so let's start off by reading what's on biden's campaign website word for work all right now you notice that i said campaign because this is what he proposed during the presidential race okay nothing is set in stone nothing is law nothing is statute out there this is coming directly from his proposed plan my friends again nothing is out there ready to go just yet so let's jump and look right on his website and see what it says biden's new first down payment tax credit will help families offset the cost of home buying and help millions of families lay down routes for the first time building off a temporary tax credit expanded as part of the recovery act this credit will be permanent and advanceable meaning that home buyers will receive the tax credit when they make the purchase instead of waiting to receive the assistance when they file taxes the following year so it sounds pretty good right i mean hey 15 grand in your hand to help you out with your down payment and closing costs now from what's written in the plan it sounds like somehow some way they're going to front you the money at closing or maybe they adjust it where you put the money out and then you've got to get it on the back end reimbursed to you in some way shape or form but it's kind of cool i mean with an fha loan you can get in for three and a half percent down there's some conventional loans that are anywhere from three to five percent down and to cover your closing costs now in a 250 000 purchase in reality you may not have to bring much to closing which is a great thing okay and if it exceeds that a little bit more you might have to bring a few dollars or we can negotiate on your behalf to get the seller to help out with the remaining closing costs that aren't covered with this program so in the past they don't release programs like this to everyone it just does not happen okay there's always going to be some restriction in some way shape or form whether it's income restriction limited to the maybe the median income of the area that you live in it could be a geographical restriction where they only want the money for this program going in certain parts of town that they're trying to improve there could be credit score restrictions there could be classes that you have to take you could be excluded from the program if you're purchasing this home or intend to purchase a home with somebody who's already purchased a home although you're a first-time homebuyer again this is all speculation and it's just based on my years you know 20 plus years in the real estate mortgage lending industry of seeing programs like this come across my desk each and every time i mean for example we've got the maryland mortgage program here in maryland and by the way i did a video it's right up here so go check it out jeff one of my lenders and i we dove in and unpacked the maryland mortgage program now with that program there are certain caveats to it again credit score requirements you got to have a score above a 660. okay if you don't you're dead in the water i'm sorry it's just it's cutting dry and this program is probably going to be similar to something like that okay but it's great if you qualify all right you you can get money to help out with closing costs and all sorts of other things for the purchase of your home now with with that said you've always got to read the fine print on these particular programs because like that maryland mortgage program if for some reason you have to move out of that house and you took that assistance money guess what you've got to pay it back if you haven't lived there a certain period of time and i fully believe that something just like that is going to be put into biden's housing plan here again just my speculation an opinion okay but i would fully expect there to be some sort of recapturing if you turned around and tried to sell the property immediately some typical characteristics on programs just like this one are they're going to come with higher rates and fees it's just inevitable my friends look the us government is not going to do anything for free whether it's loan you money for a house nor is a bank going to do anything for free so expect a uh probably a quarter percent higher interest rate than you typically would get without a program like this if it does come out now you may be wondering why would they do something like that i mean that just seems evil for for them to charge us more well you're not putting any skin in the game my friends okay you think the ui's government is not going to find a way to make some money on this you're wrong okay they're in the business to make money for the us economy okay and by throwing money in to the economy to spur houses to move that's what they're doing okay so banks they have to be smart they have to protect their investment and make a little bit more on you because you don't have any skin in the game and you can walk away scot-free and say i don't want to deal with this house anymore and then the bank and then the u.s government if it's a government-backed loan it's stuck with this house that you don't want anymore so remember you got to think like a bank now let's jump back into credit scores real quick we talked about it briefly uh here in the previous segment but you're probably going to need to have a mid 600s credit score whether that's 640 660 680 somewhere in that range is what you're going to have to have it's not only you it's all parties on the loan are going to have to have a score like this now if you think that you have a 500 credit score and this is going to be your golden ticket to finally own a home i'm sorry my friend this is not going to happen this program is not going to allow people with 500 credit scores to purchase a home and for that matter should you be purchasing a home with a 500 credit score you've really got to think about it and and do some soul searching on that one let's talk about debt to income ratios with programs like these typically you're going to see really strict and tight debt to income ratios what i mean by that if you don't know a debt to income ratio is the total amount of your debts that you have every month your student loans your car payments uh credit card payments plus the new mortgage payment divided into your gross monthly income so let's just take uh that you have debts of three thousand dollars a month your new mortgage payment is going to be i don't know another thousand dollars a month and you make five thousand dollars a month you take the four thousand you divide it into five thousand and you come up with your debt to income ratio in that instance it's like an eighty percent debt to income ratio your your loan would never be approved okay but i'm just using it for easy math and easy examples here now i'm going to tell you the impact that programs like this have on your community you may think it's a great thing all these people buying homes this is great and this is lovely we're bringing new neighbors to the neighborhood here's the problem y'all are just getting caught up in the frenzy and the mayhem this is like like like people on a black friday special running into walmart to buy a 200 television trampling over each other this is what what happens when programs like this come on out because here's the deal you already have a market right now that's filled with buyers there's a ton of buyers out there ready to purchase homes okay but right now our inventory is at about one and a half months so there's very little i mean like very tiny select group of homes that are listed for sale right now and what's happening is and just to give you a little bit of what the months of inventory means it's this if we all as real estate agents collectively stop putting homes on the multiple listing service within one and a half months all of those homes would be sold and there be no other homes out there listed for people to purchase poof gone a balanced market meaning equal buyers to equal sellers is about six months of inventory and anything greater than six months of inventory is a buyer's market okay right now we're in a strong seller's market probably the strongest ever so you are going to take people that are in bidding wars right now and now here's what you want to do you want to add a bunch of other people because again it's the black friday special to come on in and get a house today and have you all trample each other to get to this house and then overpay for it now here's what's going to happen someone's going to win they're going to overpay for this thing and it's not going to be worth what they paid for okay they made a big mistake it might be worth that maybe five years ten years down the road provided we don't run into another housing crash but you really have to pull back pump the brakes and make sure you're ready because this is the game you're about to go play if you decide to jump in when this program comes out provided the real estate market is still strong in reality here's what's happening right now like this is right now this is happening right now you are seeing those folks overpay for homes here here's the even crazier thing that's that's really happening you're seeing them buy them as is and not do home inspections wave home inspections just to get the house and you could be buying the biggest money pit that's out there and you have no clue so in the end here's what's probably going to happen there'll be some sort of fifteen thousand dollar incentive out there to purchase okay in the areas that are eligible for this the home values are going to go up just because of supply and demand i mean there's only going to be a limited supply of those homes available in particular areas and because now there's an influx of buyers that are eligible to purchase in there they're going to drive the prices up and create that again artificial demand artificial equity that's out there now the sellers win the real estate agents win and the lenders win and the president looks good for rolling out his plan and getting more americans to buy homes but he might be putting people in a more unfortunate place and causing communities to fall apart later on so we really really gotta look long and hard at this before jumping into this because if you do jump in you're essentially pouring gas onto this dumpster fire that's already happening with our market right now i mean people are savage right like now like i've seen real estate agents straight up take keys out of lock boxes with them so that no other real estate agents can come in and look at houses right now my friends this is the stuff that's going on it's not cool so right now buying it it's crazy and if this additional funds come in this is what's going to happen and it's just only going to get amplified from here so let's look into our crystal ball and fast forward a few months down the road biden's housing plan is out everyone's cheering hooray hooray hooray we're out there buying houses life is great okay flowers are blooming spring is here uh fireworks are going off it's the fourth of july all right and we get the great news covet is over and now we can all throw our masks away all right i love it i can't wait can't wait okay now here's the other thing that's going to get back to normal remember that mortgage company or those banks that have all not been making any money and gave you forbearances time's up they're going to want their money back and what's going to happen is notices of intent to foreclose uh eviction notices all of these things are going to start to get processed again and we're going to have this total housing mess flip up on its head okay meaning that all those people that overpaid and when all these filings start happening and yes i saw biden sign something that delays it for some period of time but my friend you know this is coming it's like a hurricane sitting off of the coast of africa heading towards the us and we know it's going to make landfall here before too long it's you have to prepare for it you have to board up your windows put your sandbags in the right spots so that you're prepared when this comes here because if you think this fifteen thousand dollar plan is gonna be the savior from biden or bush bush's plan back in the day obama's plan trump's plan i don't care what planet is okay at the end of the day you've got to make a smart decision and really put your pen on that paper and say is this the right time for me to purchase a home regardless of whether or not the 15 grand is there because not only am i giving you biden's plan i'm also giving you an update on what it's like to purchase a home here in maryland right now in 2021 you're gonna have to be ready to go to battle and be ready to overpay and and really just suck it up and make a commitment to stay in this home long term because those of you that are staying short term right now say you're relocating here from the military i wouldn't advise it home prices are inflated way too much right now so going back to the to this you know you may need the program maybe you don't have enough money for closing costs maybe you don't have enough money for closing costs or down payment maybe this is going to wipe you out completely and take every nickel that you have to purchase this home or maybe you don't want to use your own money you want to use the government's money to take advantage of this program find out what it really is okay because at the end of the day you should not be basically depleting everything that you have just so you can take advantage of a program it doesn't make sense it's it's probably one of the dumbest move in the world to do because you're you're you're setting yourself up for failure because even if you build a brand new home houses break okay i built multiple brand new homes i've purchased other resale homes they all break you know my home my dream home that i built i kid you not my wife and i when we moved into it many years ago we went down and the first night we stayed there the well tank cracked and we had water gushing everywhere our stuff wasn't even moved in so even new houses break this stuff does happen and you have to be prepared so if you don't have three to six months of your living expenses tucked away under your bed in a bank account you know in grandma's house wherever you shouldn't really be thinking about buying a house right now okay now hey i'm a real estate agent do you know that i get only get paid when people purchase and sell homes yes okay so i might be shooting my own self in the foot by telling you this but my job is to be your guide and put you on the right path to home ownership not the wrong path where you're you're going to be broke and and not have enough money to meet your needs and keep your house up and let alone furnish the daggone thing okay so let's make a sound decision a sound plan i'm putting my coach's hat on here right right now let's come up with a plan for you because i want you to make a smart decision i want you to make a map out and laugh at all these fools lining up to buy these houses if this program does come out like they're just setting themselves up for this black friday failure with with purchasing their home and you're sitting back enjoying your nice cup of coffee you're still in bed knowing that you've got a solid plan in place because you know what's going to happen an influx of homes is going to come to the market whether it's here in six months it might be 12 months before this happens okay but you're going to be in the best position if you do these things number one get three to six months of your living expenses tucked away saved in a bank now once you have that i don't want you putting it into the bank you know right across the street or that you normally bank with i want you to get in your car i want you to drive probably 30 minutes 40 minutes away from your home and i want you to put it into some little savings alone or credit union that's completely across town that only has like one to two branches in your area now why on earth am i telling you to do that think about it this is an emergency fund right break glass in case of an emergency if you have easy access and can transfer money back and forth online do you think that emergency fund is going to stand up and last if you don't have the financial discipline to to not put your hand in the cookie jar no so you've got to put measures in place to to prevent that from happening so go do that don't get internet access to this account just know that this baby is over here and it's safe and and put away for you okay next come up with a monthly budget act as if right now that you are a homeowner and it doesn't hurt to talk to a mortgage lender here hey i'm thinking about purchasing a home for 250 000 whatever it might be and start making that mortgage payment now and take the difference between your rent that you're presently paying and the new proposed mortgage payment and start socking that money away in cash before you know it that account is going to build up tremendously fast and well number two get rid of any stinking debt that you have don't put any more stuff on credit cards or go out and purchase a new car god forbid you do that right now that is like the kiss of death in the real estate industry it's everybody's car seems to flip and break right when they're under contract to purchase at home i don't care if you have to duct tape the daggone hoses together and have your buddy push you push it to start every morning so you can get to work you don't want to purchase a new car if you're trying to save up for a home or for that matter even worse yet when you're under contract to purchase a home okay so get rid of get rid of debt limit any expenses okay and really dial in your budget look at what you're spending money on and see where you can cut back and then really put down a wish list for your home hey what do i really want because if you wait you will have everything that you want at home at a great price so put in there what you want but you know hey it's got to have hardwood floors it's got to have a great home office set up it's got to have the best schools okay put all your wishlist stuff in there and just get to work okay in the end when this stuff does come up you're gonna be you're gonna make out so pretty and you're gonna be looking really well you see real estate agents loan officers title companies appraisers we all love these programs because people just race in and it's like a sprint to take advantage of these programs and a lot of people are just going to tell you and and i should say um like put the put the full court press on you and force you into making a decision to purchase a home that is 25 of what you want in a home but you have to do it now or you're never going to be able to get that fifteen thousand dollar incentive well wait six months you might be able to buy it for twenty five thousand dollars off there's your 15 grand back plus an additional ten you're welcome okay let's put a bow on this thing and wrap it all up you do this plan that i just laid out for you get your emergency fund saved you get your budget plan you put your wish list together for your home okay you start paying the mortgage as and you know while you're renting right now and talking that money in the savings look put down on paper what kind of person you will be how that will change you think about that okay think forward you know jump into those shoes of that confident homeowner that is financially secure to purchase this home i mean it's a great feeling because now you're gonna get out here in baltimore or anywhere else across the state and be able to enjoy it okay we have an awesome state i mean what state do you have the atlantic ocean in and beautiful mountains within a you know four to five hour drive of each other there's not there aren't any okay that's why i've lived here pretty much all of my life so do the work look at who you're going to be here in the future and my friend you're going to be setting yourself up pretty but just at the very least the very least my ask is this just breathe just pause because in the words of the famous rapper ice cube i think he said it best you better check yourself before you wreck yourself and if you do and you wait you'll be sitting pretty now look some of you folks you gotta buy right now okay there's just there's no way around it you've got a a big family you got to make a decision right now and time is ticking okay you know what you're about to get into so here's the cool part you got some rock star negotiators including myself here at the rotles film group we want to come out we want to help you in your home search and more importantly we want to put you in an amazing spot that you and your family are going to love so we just need one thing from you just one okay and that's for you to reach out give us a call shoot us a text message send us an email or fan us down with a smoke signal however you need to get a hold of us we've got your back we're moving anywhere here in the great state of maryland now look there's a few other videos that are going to pop up right here make sure you check the videos out that i did these are some awesome videos it's going to tell you what it's like to live here we're going to give you some additional areas to check out and we've even gone out into a lot of these communities and done vlogs and taking you around the streets and neighborhoods to show you all we have to offer here in maryland so that is it my friends until the next video i will catch you later see ya