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Rates as
Low as 3.9% |
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Lowest
closing cost Guaranteed |
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Seconds
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Low Down Payments
Down
Payment Loans and Gifts
Down
Payment Grant
Qualifying
For Low Down Payments
Down
Payment Assistance
State
Housing Authorities |
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Down Payment
Assistance
The best-kept secret behind the sustained
strength of the residential
real estate market
is the creation of
a new pool of buyers
who can afford their
mortgage payments but
lack the cash for a
down payment. In the
past these potential
buyers had little hope
of owning a home. Today,
thousands of these
individuals are becoming
homeowners.
According to both HUD
and Minneapolis Federal
Reserve, the number
one barrier to homeownership
in the U.S. is the
lack of down payment
money. With President
Bush's initiative to
increase minority homeownership
by 5.5 million by the
year 2010, there is
an increased need for
organizations that
can provide assistance
through the use of
private capital.
Through the use of
private capital, the
non-profit down-payment
industry now makes
possible over 17,000
home purchases each
month for low to moderate
income buyers. Today
these Down payment
Assistance Programs
(which are not just
for 1st time homebuyers)
are helping many people
live the dream of home
ownership.
These organizations
are supported through
contributions made
by home sellers. The
donations help to replenish
the pool of funds that
are used for future
buyers. Additionally
the non-profits charge
a small service fee,
the proceeds of which
allow them to stay
operational.
Buyers are provided
with gifts from the
non-profits, which
can be used towards
their down payment
and/or closing costs.
These are true gifts
that do not need to
be repaid. The grants
range from 2%-10% of
the purchase price
of the home. Home sellers
typically agree to
participate because
they believe that they
are receiving a fair
offer for their home
while at the same time
they are benefiting
from making a donation
to a non-profit organization.
Benefits to
Home Buyers
.
Get into a home
.
Begin building equity
.
Start taking advantage of tax benefits
.
May not have to deplete their entire savings
Benefits to
Home Sellers
.
Expose their home to a larger pool of buyers
.
Typically will receive full price offers
.
Sell their home faster
.
Added benefit of making a donation to a non-profit
The organizations differ
slightly with some
providing additional
benefits for the homebuyer.
For instance the Home
Downpayment Gift Foundation
has a program called "Home
Mortgage Protection
Plus". This Program
covers gift recipient
who are enrolled in
the Platinum Program
against involuntary
loss of employment.
Should the gift recipient(s)
lose their job during
their first year of
home ownership, the
Foundation will provide
for up to six months
of mortgage payments
(maximum of $1800.00
per month in P.I.T.I.)
on their behalf.
The non-profits strongly
encourage Home Ownership
Counseling prior to
the home purchase and
some provide post-purchase
counseling to its gift
recipients.
The Gift Programs generally
participate with FHA,
Conforming, and Non-Conforming
Loan Products. The
downpayment assistance
program can be used
for Single Family (1-4
unit) homes, Manufactured/Modular
Homes, Condominiums,
Townhouses, Existing
or New Construction,
Rehab and Non-Conforming.
While they do not provide
any lending services,
they can make available
local mortgage professionals
who are familiar with
their Program. For
more information about
these programs you
can contact the Home
Downpayment Gift Foundation
at 1-888-856-4600 or
visit their website
at www.homedownpayment.org. |
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