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Assisting First Time or Underqualified Buyers

I love working with first time buyers, but frequently these folks have problems getting qualified for a loan, especially in light of today's tight lending guidelines. I recently met a young woman who is currently on government housing assistance--she lives in a rented unit--but evidently she pays the majority of her rent herself. The agency that administers her rent just suggested to her that she really ought to look into buying since she can afford a decent payment. Of course, they didn't give her any ideas about how to get financing! So, I'm on a mission. Anybody out there know of any first-time buyer programs out there for somebody like her? Of course, she needs a down payment. I've thought of bond money and FHA things like Ameridream, but I feel like there are probably other things out there I could use to help her. I'm in the Cincinnati area, so if anyone has any suggestions for me, please comment!

Posted by Nola Comingore on 09/17/2007 09:48 AM

Comments (5)

first time buyer, down payment assistance, fha, bond money, real estate finance, cincinnati, ohio

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5 Comments on Assisting First Time or Underqualified Buyers

SEP

2007

Whew, touch one....I am going to have to say FHA all the way, or look for a local NEAMIAH type grant. Go to your local state and county pages and look for grant info for buyers....they are out there! Though they do require a lot of work!

Nola,

Good question for a mind reader!

You're obviously looking for a a grant and some form of FHA loan, but that doesn't mean "a first time home buyer" program is best for your client. There are alternatives!

Without knowing her credit, scores and history, source of her income and it's likely hood of continuing, no answer is of any value.

I have to wonder "why now" is she paying most of her rent because she recently went to work?

Can she prove what she pays? Canceled checks? Does she pay her own unities, can she prove it?

Your lady could have lots of alterntives or very few, but there are alterntives.

Bill

William J Archambault Jr

The Real Estate Investment Institute

First National Mortgage Sources

SEP

2007

Hey Nola,

I noticed this post of yours and you seem knowledgable about down payment assistance programs and wanted to make sure you knew about www.BuyersAccount.Com where we can provide down payments to anyone regardless of credit or job history through our unique "Earned Income" program.

If you are familiar with Ameridream or Nehemiah then you understand our business model only we are not a gifting or granting program. We are a for profit company that uses the "Earned Income" business model to provide down payments to our employees.

It is fully legal and RESPA complaint. Please take a look at our website and let me know if you have any deals we can help you close.

Thank you,

David Hayes

SEP

2007

Hi David,

Thanks for your input. Very interesting, but I'm not sure I entirely "get it." Does the cost of the "membership" vary depending on the price of the propertyin question? How does the earned income affect the buiyer's tax rate? I can see where this might be of good use, but the particular client I'm asking about probably couldn't stand a huge tax increase, since she's receiving assistance with housing at the moment.

Can you elaborate?

Nola

Nola,

Great questions and I appreciate the opportunity to answer them for you. Please keep them coming.

1. Does the cost of the membership vary...?

Yes. The price of the membership is negotiated between our Independent Dealer and the person he is selling the membership to. Our fee's are always calculated the same way no matter the price of the membership.

2. How does the Earned Income affect the buyers tax rate?

Excellent question. You are thinking ahead and you are exactly right. The home buyer who is also an Independent Dealer for my company will receive a 1099 at the end of the year for the income he earned from the sale of the membership. At the end of the year he only pays taxes in accordance with his specific tax situation and income amount. The webpage at http://www.buyersaccount.com/the_process.html shows every step of the transaction and outlines the tax implications for the Independent Dealer.

3. Tax implications are always the case with the Earned Income model. People in special situations like the one you mention probably will not want to use our program.

I hope that answers your questions thoroughly. Is there anything else?

David Hayes

CEO

Buyers Account

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