Matt wrote to me with an unusual homebuying tale which he’s also posted to his site, Zero Down: My Homebuying Story. On December 29th, he closed on a $90,000 Texas home. His total out-of-pocket expense was $70. He writes:

Anyone who can get a mortgage can pay zero down for their new home. I wrote this web page because I think I have an interesting story. Some of the home buying techniques I discovered are not widely publicized, and in the spirit of sharing, here is how I did it.

Matt’s secret? Asking for a “seller’s gift”, which is a financial sleight-of-hand that, in effect, builds the down payment into the mortgage.

I was worried that Matt’s site might be some sort of scam, but after checking things out — and based on Matt’s assurances — I believe he is for real. As he says, “I am not a real estate agent, a mortgage broker or an attorney. This is a true story, but your experiences may be different.”

It’s important to note that Matt is on top of his finances: he’s young, upwardly mobile, and frugal. He just didn’t have cash for a down-payment. Some creative thinking helped him purchase a house. But a seller’s gift should not be viewed as a means to get into a house with a mortgage that will break your back.

Read more about seller’s gifts at:

And be sure to check out Matt’s story about his no down payment home.