How do I write and Offer when my buyer is applying for a government grant?

Asked by Judy Boyle, Marlborough, MA Thu Jul 3, 2008

What is the proper way to write up an Offer to Purchase when a first-time homebuyer is going to be applying for a government sponsored downpayment grant which will match a sellers contribution? For example, if a buyer wishes to pay $200,000 for a home, do I use $206,000 (assuming the maximum 3%) as the offer amount and indicate that the buyers will be applying for a grant. Also, how could this affect the transaction if the buyer does not receive the grant? Should I add a contingency stating that the buyer can get out of the transaction if they do not receive the grant. Anything else I should be thinking about? Thanks!!!

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3
Megan Manly, Agent, Nashville, TN
Sat Jul 5, 2008
I sold several of the Hope 6 grants here in Nashville. Most every time, I had the loan officer with me when I wrote the offer. The sellers appreciated it, the grant agency appreciated it, my buyers LOVED it and it created successful closings every time.
0 votes
Vicky Chrisn…, , 20176
Fri Jul 4, 2008
whoever is administering the grant program should have an addendum for you and/or the lender can help. but, when all else fails, you can create an addendum of your own. Keep it simple "this contract is contingent upon the receipt of ___ from _____. "
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Jul 3, 2008
Yes add the contingency and the government has certain forms you need to obtain to complete
http://www.lynn911.com
0 votes
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