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Hassan Nicho…, Home Buyer in 90036

In your opinion, what's the future for down payment assistance programs?

Asked by Hassan Nicholás, 90036 Thu Mar 13, 2008

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Programs such as Ameridream and Nehemiah are helpful to individuals who are looking to purchase a home with very little down payment. However, these programs require the funds to come from the seller, builder, or real estate agent. They are purely a pass through to the borrower. Most true down payment assistance programs are limited to very-low and low income individuals and households, often 80% area median income and below. Often times, money is applied for and allocated to the borrower, with the participating agency holding a secondary lien position on the home. The borrower usually does not need to make payments on the amount granted, and no interest accrues. However, the money is repaid when the house is sold, refinanced or not maintained as the primary residence. Most of these programs are sponsored by government agencies or local non-profit organizations. Many employers are now starting to develop housing assistance programs to entice new and existing employees to become homeowners and establish roots in the community. I believe we will see this trend grow as employers realize the benefits, and mortgage underwriting guidelines continue to tighten. My recommendation is to seek out guidance from a local housing authority. Face-to-face homebuyer education is often required to participate in these programs, and it is best to attend the education before you start searching for a home or a loan. You can find certified housing educators by visiting the HUD link below.
1 vote Thank Flag Link Tue Apr 8, 2008
I like them. They are awesome. For example, check out Ameridream's program.

AmeriDream has a long history of helping first-time, and low and moderate income individuals and families achieve their dream of homeownership. In many cases, these families move into new homes and new communities across America.

Check out the Web Reference link below. It's an excellent program. Sellers who enroll their homes in the program agree to help fund it by donating 1-10% of their home's sale's price at HUD settlement, may get a tax right off for the fee charged and it actually opens up the buyer's pool for pre-approved purchasers shopping as first time buyers using the program (lloking through the directory of homes in the program). Win-win situation.

Regards, C.
Web Reference:
Web Reference:
0 votes Thank Flag Link Thu Mar 13, 2008
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