I have a 3.5% down payment and was told that is all that I need to get a loan. Why should I do more?, with Nick Prefontaine and Zachary Beach

Episode 34:

Episode Topic:

In this episode of Not Just A Transaction, hosts Nick and Zachary explain the benefits of putting more than the minimum of a 3.5% down payment on a home. They also share unique ways that a buyer can make a larger down payment over time, and how buyers can enter into a mortgage with equity on the home.

Glossary of Special Terms Used in this Episode:

  • Lease Option – An agreement between a homeowner and a renter that gives a renter the option to purchase the rented property during or at the end of the rental period.
  • PMI – Private Mortgage Insurance that a buyer is required to have if they make a down payment less than 20% of the home purchase price.
  • Equity – The difference in value between a home’s fair market value and the amount of outstanding debt on the home through mortgages or other types of liens.

What you’ll learn about in this episode:

  • The benefits of putting more than 3.5% down on a home
  • How much of a down payment do you need to avoid paying for PMI
  • Why a higher down payment can mean a lower monthly mortgage payment
  • How buyers choosing a lease-purchase can walk into equity at the time of purchase
  • Why lenders are likely to give a loan to a buyer who’s been making down payments over time in a lease-purchase


Nick’s Bio:
In 2003, Nick Prefontaine was in a snowboarding accident that left him in a coma for over 3 weeks. The doctors told his parents that he probably wouldn’t walk, talk, or eat on his own again. Less than 3 months later, he was running out of Franciscan Children’s hospital. Now Nick speaks to groups that benefit from his message of overcoming adversity.

Nick grew up in the real estate industry and got started at an early age. Most notably, he was knocking on Pre-Foreclosure doors at 16, doing up to 50 doors a day. This experience helped shape Nick’s real estate career. When someone opens the door you better have something compelling to say.

Now, Nick specializes in working with lease purchase buyers to get them into a home and on the path to home ownership. That includes working with them throughout the entire deal which ends in them being able to get their own loan. Getting buyers to the finish line is something Nick and the entire Pre Property Solutions team take pride in. That is something that separates them from their competition. Regardless of a buyer’s credit situation, he looks at their complete financial picture and comes up with a plan to get them into a home.

Zachary’s Bio:
Zachary is an Amazon Best-Selling Author of The New Rules of Real Estate Investing and revised edition of Real Estate On Your Terms. He has been an authority in real estate for 7 years now and has personally completed hundreds of real estate transactions and has mentored investors to complete thousands of transactions.

At the age of 25, Zachary decided to leave the world of bartending and personally training and jump into the family business. Now he is an equal partner and runs the acquisitions department, focusing on helping sellers accomplish their goal of selling their property.

If Zachary is not working, you will find enjoying the outdoors or spending time with his wife Kayla and two kids Remi and Bellamy. His passion for family and business is what keeps him motivated and excited to take on each day.