NMP gives RE/MAX Advantage Las Vegas Agents an advantage over other agents with exclusive rights to use the "No Mortgage Payment"
NMP offers a product which helps owners sell their listings. NMP contracts with an owner to pay 1 year of the buyer's mortgage payments. Normally, lenders won't allow a seller to credit a buyer over 3% of the purchase price. So, paying a buyer's mortgage for a year is out of the question because it is closer to 8% of the sale's price not 3%. However, NMP is able to step in as a third party and contract with sellers in order to facilitate payments made for their buyer at a future date. This is possible because NMP is a subsidiary of a nonprofit called United Projects Inc. The nonprofit status allows NMP to offer a variation of the "down payment assistance programs" which are prevalent in the low-income housing market across the nation. In fact, nearly one in every five borrowers whose mortgage is insured by the FHA makes use of a down-payment program. NMP is not lender. NMP does not originate loans. We are a service provider and as such the buyer must qualify for their own loan. The NMP contract does not count towards the lender's limit of 3% buyer's credit and therefore can be used with any loan program a buyer has.
Example:
(Actual Property, Duplex FSBO in Sacramento, CA)
Original List Price: $415,000 Cost of NMP Contract (Actual Cost): $30,045
No Mortgage Payment: 1 year
Cost to Close: None (closing cost paid as well)
* The new owner was able to buy this Sacramento, Shingle Heights area, duplex at market value and have her closing cost paid as well as her mortgage payments for 1 year. By living in one unit and renting out the second unit, she is collecting rent and living rent free. She closed on this property in February of 2007.
Example:
(Actual Conroe, TX MLS Listing 1922775)
Original List Price: $895,000 Total Price Reduction: $0 Days on market: 187 Cost of NMP Contract (actual cost): $64,815 Secondary List Price: $895,000 Suggested price drop by realtor: $90,000
* Without dropping the price as the realtor suggested, the property sold within 15 days after the "year of no mortgage payments" was offered. The owners are currently in California collecting rents on the property until they move to Texas in 6 months. In the meantime, there is no mortgage payment due by the new owners.
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