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Down Payment Assistance non-profit

By
Services for Real Estate Pros

First of all I would like to apologize to the several active rain members who contacted me with regards to ameridream. The organizations website is as follows www.ameridream.org (NOT .com).

This past week I had the opportunity to speak with almost 1,000 real estate professionals about exit strategies for selling wholesale properties, rehabs, flips, and other real estate investment projects. The main issue is where to find buyers.

Often times the potential buyers are young, low income, future investor types who truly do not have money for a downpayment and/or closing fees. I am hearing that many of these people even submit offers but then get denied because the downpayment requirement is often times higher on a "fixer upper" than a retail type home. But these potential buyers are really interested in the idea of buying a home that needs some work in order to get a great deal.

Sellers of these types of homes are usually left with only one market of buyers that being cash buyers or buyers with equity lines ready to go.

But what about the people who really want to get into a fixer type property but end up denied due to inadequate funds. 

We all know the risks involved in "gifting" as a seller or as an agent representing a seller. Some of us may have thought about doing this to get a deal done but we know its unethical and illegal.

I just stumbled accross this website, www.ameridream.org, a few days ago and I am hooked.

This non-profit group allows sellers to make a donation to ameridream for the equivilant amount of the down payment and/or closing costs and then ameridream will make the downpayment for the buyer.

Very cool agency.

Does anyone have experiences with this company? Please share. 

Comments(8)

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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Ameridream, Nehemiah have been around for years.  They've been quiet for the past 4-5 years because they require a 3.75-4% contribution from the seller and sellers have been loathe to give the time of day for some years now.  But, things have changed and these programs may become popular again.

Another one is the NACA, which is really better if in your area.  Funded by Bank of America, this program is a $0 down and eliminated the 3% FHA needed for Ameridream and Nehemiah. 

 

May 26, 2007 03:56 AM
Erika Nicholson
ROSE ANNE ERICKSON REALTY, LLC. Columbus Ga - Fort Benning, GA
Columbus Ga Homes, Columbus Ga Real Estate, Ft Benning Ga,
This is old news worth mentioning again for new agents Anthony!  There are many programs available for down payment assistance.  Federal and local programs offer low interest rates on repayment of grants and some are forgiven entirely after 5 years. Most of the prorams involve income limits and all require verifiable credit worthiness.  There are also discounts for teachers, firemen and policemen.  Good Luck!
May 26, 2007 04:00 AM
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL
Thanks for sharing such a great sourve!  I've got at least one person in mind I'll need to share this with.  THEY will hopefully  thank you soon too!!  :-)
May 26, 2007 04:15 AM
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL

Anthony---I loved your comment on MY POST regarding "Dont' you love it when...."   

***I appreciate your "reality check" as an agent, realtor, investor, person, etc!  I truly believe in this line of business you have to give a piece of YOU!!  Sounds to me like YOU posess that quality.  :-)  Anyhow, that's a quality I admire and wanted to share THAT with you.  Ohhh...and THANK YOU for leaving a comment on my blog! 

 

May 26, 2007 03:19 PM
Chris Lengquist
Ad Astra Realty - Olathe, KS
Kansas City Real Estate Investing
I can attest to the competency of Ameridream.  However, in a tighter appraisal market it can sometimes be a little challenging.  But that should discourage the right buyers/sellers from trying.
Jun 05, 2007 11:52 AM
Tony Hodge
Piscataway, NJ

Chris, Susie & Rosemary-Thank so much for your comments!!!

Rosemary, I am really excited to hear about the Nehemiah training program. Please start a blog about it.

Anthony

Jun 15, 2007 10:48 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
Don't the sellers actually make a higher donation and the agency keeps a percentage for themselves?
Jun 15, 2007 03:31 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
Hmmm... this is not what I was told.  Red Cross, as an example, is "non-profit" too, but that doesn't mean they don't take a lot of money.   Their excec are very well paid... and they've taken a lot of heat for it.  Please do report back and tell us what you learn.
Jun 16, 2007 03:06 AM