Yes You Can Get FREE Money To Buy A Home With Grant Programs

[fyr196]

Contact you Congressperson to support H.R. 600. Introduced on Jan 16th. Please Google it and call or write or email your elected rep. Further information at www.opencongress.org

[Trying2getAhead]

Originally Posted by sr28b

It's a little misleading in that the gift is repaid by the seller at settlement. the seller enrolls the subject property in Nehemiah's program and agrees to donate a sum slightly larger than the amount that is 'gifted' prior to close. So, 'the gift does not have to be repaid' is a little misleading.

Neighborhood Gold, Nehemiah, Ameridream Charity are all the same gig.

Tourniquet, the good news is that there are just a few forms for the buyer and seller to complete so there is no long process.

These programs work with FHA currently, but will be going the way of the dinosaur as soon.

This post was made back in 2006, has the dinosaur remark come to fruition? I was doing research online recently, and saw most of these programs still listed and actively available?

Also, can these programs be used in concert, or can you only use one of them during the purchase of a home?

My concern is, how do you become "qualified" for these loans, and once you're approved for a certain amount, how do you draw upon the funding available to you? If you find the perfect home and want to make an offer on it and get the ball rolling, how long does all the red tape take and how would you approach the purchase of a new home since all/most of the DP and Closing costs are in gift/grant form and not readily available in your bank account?

[Trying2getAhead]

Originally Posted by Goose123

I look at those down payment assistance programs as scams. It is not a gift, you are financing it. The FHA allows gifts from just about everyone - family, church - and they don't charge a fee. Take your time and save up the 3%, you will have a much better chance of qualifying.

If you live in a rural area, check out the USDA. 100% financing with no mortgage insurance. There is a 2% fee, but it can be financed. Get the seller to pay closing cost and your in.

Go to their site to search for property eligibility - put in an address. Also check income limits for your area (you can't make too much).

580 score or better should work. 620 or better and credit isn't an issue. Their local office can give you the name of a lender.

Rural? Interesting... my MAIN GOAL of researching the purchase of a home is to only have to put 5% cash down, and to NOT have to pay PMI (private mortgage insurance) which they usually force you to do when you do not have 20% down.

Are there any programs that offer this? The $10,000 cash isn't an issue on the new construction we are planning on, but the PMI is a killer, and we are trying to build a new home.

[young couple]

What about the NSP ?- Neighborhood Stabilization Program?

You get 20% of the purchase price when buying a foreclosed home.


Anyone used this yet?

[annelindsay]

Certainly informational.

[Elle Paris]

Originally Posted by lostindebtinVT

Grant Programs are legal and approved by the HUD. Some grant programs were stopped last year, however, the Ameridream Charity is still an active grant program that is legal.

These programs help people who have not saved money for the down payment or closing to obtain mortgages. Technically, the seller registers their home and agrees to a 3% downpayment plus a $500 service fee through the purchase and sales contract. The seller is also allowed to pay up to 6% toward buyers closing costs, prepaids and escrows all through the FHA program. Because a seller is willing to contribute for the down payment and closing, prepaids and escrows, they will ask more for the property. A hypothetical example would be on a purchase price of $100,000 the seller would agree to donate $3,500 to the Ameridream Charity and an additional $4,000 for closing costs, prepaids and escrows. After closing the seller only nets $92,500, but the buyer paid $100,000. So the buyer really finances their closing by offering more money. Someone who didn't need assistance could just pay $92,500 and pay their own closing costs and put down their own 3% down payment.

So it is not a silent second mortgage or anything that needs to be repaid, it's actually in the higher purchase price.

I hope that makes sense.

Does that mean that it can be a charity tax write-off? Is that how they swing it?

[Elle Paris]

How many posts does one have to have under one's belt before members have the common courtesy of replying?

[Quader]

Originally Posted by Elle Paris

How many posts does one have to have under one's belt before members have the common courtesy of replying?

just one . maybe noone that has read it knows the answer .. I don't

Q

[Elle Paris]

Originally Posted by Quader

just one . maybe noone that has read it knows the answer .. I don't

Q

Thanks for answering at least that one! I was hoping the charity write off question would get some reaction since it is probably the trick...

[samson smith]

[QUOTE=firstsource;682682]Recently there was a question on grants & Gift Programs. This is a more thorough answer to that question

A lack of adequate cash for a down payment and/or closing costs doesn't mean that you absolutely can't buy a home of your own. Even if you don't qualify for a no-down-payment VA-guaranteed loan, you might qualify for a grant program that provides money for a down payment. This report provides information about nine current grant programs.
· The Nehemiah Program-Provides a gift of 1% to 6% of the contract sales price to be used toward a down payment and closing costs.
· Family Home Providers-Gives a gift of 3% or more of the contract sales price to be used toward a down payment and closing costs.
· The Hart Program-Homebuyers can receive up to $15,000.00. The amount of the gift is based on need and is not a set percentage of the sales price. Homebuyers do not need to be first-time homebuyers to qualify for HART gift funds.


Yes, there are many grants in addition to these programs that you may qualify for, including grants to pay off your credit cards, student loans, and other personal expenses. There is billions of dollars in your tax money being given away to millions. You are entitled to receive some of this money too.

[haree]

Thanks for sharing this informative post.
I want to add some information, now a days the real estate business have been prevailed and most condolence business near to me

[veteransadvocate]

Great info Charles!

[Taz]

Maybe someone could update the original post with the ones that are actually current.

Anyone know off-hand which ones don't apply now?

[cajun_duck]

Originally Posted by Taz

Maybe someone could update the original post with the ones that are actually current.

Anyone know off-hand which ones don't apply now?

BUMP