Free Money! First Time Homebuyers

By
Services for Real Estate Pros with Short Sale Resolution Network

Is there any reason why "Professional" real estate agents are not more "in tuned" to the amazing programs available to First Time Home Buyers?  As a loan professional, I often wonder why agents who state they are out to help their buyers have no interest in these program.  Most cities in the state of California have First Time Home Buyers Programs.  I guess it is not really free money, but nearly free. Example today I went to the City of Carson's program.  Out of all of the licensed real estate agents in and around Carson, California I was surprised to see only about 35 licensed agents?  This program will give a qualified first time homebuyer up to $100,000! All the buyers have to do is take ONE 8 hour class, not have owned a home in the past 3 years and meat the income requirements, no bad for $100,000.  This particular program places a lien against the home for the amount and only has to be paid paid if the homeowner refinances, sells or leases the property.  What these programs do?  These programs help your buyers qualify for more home! Example say a buyer wants to purchase a home for $325,000 and only qualifies for $300,000.  With 3% of their own money and 25% from the City, their loan amount with the City financing is only $234,000 dropping their payment and making their new home more affordable.  Let me make it really simple:

FHA vs. City First Time Homeowner Program

FHA 3.5% down payment - $11,375, actual loan amount with MIP =$319,113, payment =$1762.15 PI, Taxes =$338.54, Insurance $58 and MMI = $130.67 for a grand total of $2289.36 per month.  FHA will allow ALL gift money, but also charges the MIP and the MMI. The buyers should have at least a 600 credit score and on a 30 yr loan today the rate ranges from 5% to 5.375.  On the 5/1arm a buyer could get as low as 4.375%, yet must qualify at a higher indexed rate. FHA Is still a great program with or without any special programs!

Ok....lets see how the city Program helps this same buyer: 3% of their own money, no gift for the first 3%, 25% funds from the City ( the amount can be as low as 17% and up to $100,000) Say our buyers qualify for 25%.  Their new loan could be a conventional loan with an amount of$234,000! No MMI! No MMI, today's current rate of 5.125% makes their new payment $1274.10, taxes $338.54 and Insurance $58 for a grand total of: $1670.64! That is a savings of over $618. per month.  If you really want to help this buyer with the savings show them how if they pay an extra $200 per month on their loan since they have such a savings that they will save an additional $157,918 and pay off the first in 22 yrs! Cool stuff! So what are you waiting for? I can be reached at 866-844-6873.  I look forward to help your homeowners with all their financing needs and your sellers with FAST short sales!!

Buyers and agnets call your Citys today.  Carson, California will be having their 8 hour class this month! Google Carson, California or call me and I will help you with all your questions!

 

 

 

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Rainmaker
3,111,023
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hi Sharon, this is a very informative article, there are many programs avaliable to assist first time home buyers that we are not aware of.

John Pusa

Oct 01, 2009 03:11 PM #1
Rainer
7,531
Sharon Butler
Short Sale Resolution Network - Brea, CA

John, there are a ton of programs you can help your buyers with...it just takes time and understanding the numbers!  There are programs out there for Teachers and the Police Officers Next door!  The main thing that we, as professionals are suppose to do, is help people when they are making the biggest decision in their live....buying a home!  It is great to work in the areas where cash is flowing, but it is rewarding to know you are the real reason a family is in their first home.  I have been funding FHA loans for years and it usually is though my help the buyers are directed to their city home development department to learn about the programs offered!  If you specialize in an area all you have to do is contact the city hall and they will direct you to the right person, usually the housing department.  It may take a little work and a little time but it will be well worth it!  I can do FHA Loans in all off California and several states, FHA loans work great with the City Programs!

Oct 01, 2009 03:45 PM #2
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Rainer
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Sharon Butler

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