The facts are as follows:
1) The soft second is a LOAN. If you live in the house after 5 yrs it begins to be forgiven, with a certain % forgiven each year you live in the home after the 5 years. So after 5 years it begins to be a GRANT..as in money to not have to pay back.
2) The closing cost money is a GRANT, STRAIGHTUP MONEY a buyer does not have to come up with. The closing cost money can be used for INSURANCE for the first year which equates to about $3000 to $6000 per year PLUS the other closing costs.
To further clarify:
A. Most sellers are not paying closing costs...words like "most", "average" and "smell" are not part of the rebuilding process.
B. The monies for this program are there..but you have to qualify. This means you need to be able to afford and show you are responsible enough to hold down a job and pay a mortgage. The house needs to be completed as per Fannie Mae and Freddie Mac guidelines....this means the house must be 100% complete.
C. If buyer's have a Buyer's Agent helping them along to guide a potential homeowner to buy the right property for a decent price this program can happen. It takes work from a dedicated Realtor who is acting on behalf of a buyer, not a seller...and as such the buyer serves themselves best by having a Buyer's agent representing them throughout the entire process of finding financing and a home.
"First-Time Homebuyer FundThe First Time Homebuyer Fund offers soft-second mortgage loans at zero (0%) per cent interest up to $65,000 and a closing cost assistance grant up to $10,000 for a homebuyer.
What grant? Closing cost to take out a loan?? Closing cost that most sellers are paying anyway??
This smells! Ohh, I see, New Orleans, of course!