BUYER BEWARE...Home Purchase Assistance Program (HPAP)- Home Rochester

By
Real Estate Agent with RE/MAX Realty Group Pittsford, NY
https://activerain.com/droplet/BLf

BUYER BEWARE...

City of Rochester Home Purchase Assistance Program (HPAP) -Home Rochester

 are plentiful.  There is a growing trend in every city small and large where an official has an idea to help the lower income families purchase a home.   Funds are obtained in the form of grants to purchase with little money they down.  The positive information is boldly posted on the front page of their website and say call "Salesmen Sal" to learn more.  They are also glad to in-service local banks and loan officers to get support for financing, but I have yet to hear of agents getting this same information.
Danger Sign

City of Rochester Home Assistance Program (HPAP) & Home Rochester

money is funded by the City of Rochester and supposed not-for-profit entities for home buyers in Rochester NY.  They cater to Rochester, NY home buyers with lower incomes (50%-80% of median home income) or in another part of the website up to 120% of HUD's median family income based on the grant.

The City of Rochester-Home Rochester purchases run down homes for less than their market value-current assessment through these entities(mostly pennies on the dollar), obtain funds from the National Bank of (insert state), pay their own people to rehab the home including tearing out walls, putting on new roofs, drywall, doors, floors, fixtures, appliances, driveways, sidewalks, carpet etc.  Potential home buyers seeking grant money to buy a home in Rochester, NY are enticed with a brand new looking home.

Agents can not find the comparables for Home Rochester homes.  There aren't any as the not-for-profits don't use the MLS.  A recent home I did a Comparable Market Analysis had one home in the area listed at $74000 and sold for $55000, what the market would bare.  All other homes of similar size and square footage etc sold for $55000 or less as well. I could not explain to the the client how this house would sell for this price no matter how much new stuff it had.  

First time Home buyers

in the City of Rochester, NY seeking $3000 grant money may not educated enough in this realm of City of Rochester grants.  Grant money is in part useful to support individuals that are almost there with the 20% which all people are encouraged to do.  Why because it teaches budgeting, money skills andd own right financial sacrifice to get your dream home.  Further more grant money for buyers in the Rochester, NY area comes with many attachments.  

Homes Rochester homes on its individual website are not listed for atleast 30 days on the local MLS, so when a buyer falls in love with the home they want to buy it now.  There is a problem when they have been working with an agent for 3 months every weekend and now want out of their contract due to the stipulation listed below.  Buyers do not want to wait the waiting period to write the offer when they can just "pay full price" and get the house now, even though they turned down full price before because the house would not appraise for that.  

Homes Rochester homes of course has a small section in the FAQ section of the website at the very bottom that reads "If homes are listed with the "not-for-profit -developer" your agent must have a prior compensation agreement with the developer.  Your agent will only be compensated if the homes are multiple listed.  Again I can not recall an agent being introduced to this program but many loan officers are well aware.

When

Home Purchases Assistance Program (HPAP) - Home Rochester clients

in Rochester NY ask for grant money there are contingencies (meaning grant money is dependent on the fulfillment of conditions), or you will have to pay it all back.  What are those contigencies you ask?  

FIRST TIME HOME BUYER :

Qualifications & Contingencies for Home Purchase Assistance Program-HPAP($3000)*

  1. Home must be located within the city of Rochester and be one or two-family properties
  2. Buyer must contribute $1,500 of their own funds towards closing costs
  3. Buyer must live in the property for five years
  4. Buyer must qualify for a conventional, FHA, VA, SONYMA loan mortgage
  5. Buyer must attend pre-and-post-purchase home buyer training
  6. Eligible buyers must have a median family income below 120%, as outlined by the US Department of HUD
  7. Buyer must choose homes in a specific area designated, limiting their choice/location/price point
  8. City of Rochester does their own inspection separate from buyers inspection, and all items must be fixed
  9. City of Rochester must approve all parts of the contract 
  10. Buyers agent may be able to write the contract

Qualifications & Contingencies for Homes Rochester (up to $5000)**

  1. Home must be located within the city of Rochester and be one or two-family properties
  2. Buyer must contribute $1,500 of their own funds towards closing costs
  3. Buyer must live in the property for five years
  4. Buyer must qualify for a conventional, FHA, VA, SONYMA loan mortgage
  5. Buyer must attend pre-and-post-purchase home buyer training
  6. Eligible buyers must have a median family income below 80%, as outlined by the US Department of HUD
  7. Buyer must choose homes in a specific area designated, limiting their choice/location/price point
  8. City of Rochester does their own inspection separate from buyers inspection, and all items must be fixed
  9. City of Rochester must approve all parts of the contract 

BUYER BEWARE  City of Rochester Home Rochester Grants (up to $5000)   DO NOT

  • Educate you on all the financial risks when you have an Exclusive Buyer Agency Agreement: the City of Rochester and it's entities will not pay your agent if it's not listed through the MLS and this is process is not reviewed in the application interview process.
  • Have no comparables except the homes the private entity refurbs, which won't have access to
  • Asked buyers if they are under Exclusive Buyer Agency Agreements with an agency  
  • Allow the use a REALTOR® to protect buyers interests as they will not pay the brokerage fee
  • HAGGLE THE PRICE OF THE HOME UNTIL IT'S MLS LISTED!  LISTING IS ONLY ON THEIR OWN WEBSITE
  • Allow anyone besides supposed not-for-profit entity who is a broker/agent to write the contract.  They deal with both ends of the transaction without disclosure of dual agency in the beginnin
 
My message to all Home Buyers in the

City of Rochester home buyers looking at Home Rochester &  Home Purchase Assistance Program (HPAP) looking for grant money

,please do your homework.  Sales Agents and REALTORS® are required by law to disclose how they are representing you and are always working with you.

 
REALTORS® will educate on the Blue REALTOR Symbolplus and minus of each decision you make but you will make the decision.
Lastly there are only two parties who should control the price of the home that is the buyer and seller, NOT an agency, government or entity.  
 
On behalf of all the men and women who serve the home buying/selling community I thank all the buyers and sellers in the City of Rochester and surrounding areas who educate themselves on the tremendous advantages of buyer ageny agreements and the    grant process .  May your next housing transaction go smoothly with assistance from your REALTOR®.
 
 

* I have chosen to put all the information HPAP with a link verbatim from the website.  

**  I have chosen not to include a link to the HOMES grant as I can not personally advocate for something that I do not believe serves my community well.

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Helping Families Make the Right Move!

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BRAD NEWTON

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