Macomb County MI first time home buyers - I won't be asking if you are pre-approved for a mortgage anymore...

By
Real Estate Agent with Keller Williams Realty - Lakeside Market Center

...I'll be asking you if you have 3 1/2% of an estimated purchase price in your bank account.HUD equal housing opportunity


The down payment gift assistance programs that have been so helpful to Macomb County MI first time home buyers over the years are probably going to be taken away from these purchasers by our "we know what's best for the public" government. (The new housing bill, with this little tid-bit included, has been passed by our representatives and is now heading to President Bushs desk for a signature.)



Goodbye Nehemiah
- it's been fun working with you. Ameridream? Ditto. To the employees of those companies: I feel for you. Our entire state has been hit hard by lay-offs and job losses. I see it in the eyes of our residents every day. Good luck to all of you and thank you for being there for my first time home buyer clients over the years.

To the future first time home buyers in Michigan: You can still receive a gift of money for the down payment of your new home if the gift comes from a family member, close friend or employer. Keep a paper trail of the gift money, your mortgage lender will need to see that it is truly a gift and not a loan.

What I find completely amazing about all of this? Most of the home buyers that I've been a partner with in their real estate transactions have had the money to come up with a minimal down payment to meet FHA requirements. They chose to utilizie the down payment gift assistance programs to keep the money in their bank accounts tucked aside for emergencies.

I called that smart. Very smart. Our government calls it stupid.

From my understanding potential home buyers have until October 1st, 2008 to take advantage of the opportunity provided by programs such as Nehemiah and Ameridream. After that, plan on having 3 1/2% of a purchase price as a down payment prior to begin looking for a home.

When you hear me ask if you have a down payment don't be surprised. It will be the first question I ask of you when we meet and talk about your housing dreams.



© 2008 Kris Wales a Macomb County MI real estate agent "News about the Down Payment Assistance Programs" and how it will affect first time home buyers.


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Ambassador
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Stanton Homes
Stanton Homes - New Home Builder - Raleigh, NC
Design/Build Custom Home Builder in North Carolina

Kris - that's what I read as well.  I'm not sure why, when the gifting program was taken away, the minimum down payment was actually RAISED from 3 percent to 3.5 percent. 

Jul 27, 2008 11:14 PM #1
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Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Ugg, I knew it was coming, my lender told me. Just didn't know the deadline. So all loans in progress are OK, but any new ones not so... or is it until Oct 1st they can still do Ameri Dream and Nehemiah?

Jul 27, 2008 11:15 PM #2
Rainer
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Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Penny:  Then I guess I'm not the only one who found that more than odd:  Getting rid of DPA programs AND raising the down payment minimums by 1/2%.   Yeah, I can see the wisdom in that, can't you?  :: end sarcasm::

Missy:  Hang on for the ride...for now it appears that our buyer clients should be ok thru Sept 1 (assuming a 30 day close..).  However I'm hearing rumblings that the programs themselves my shutter their doors before October 1st to ensure a smooth close out.   I have a buyer client now that  just submitted an offer using Nehemiah and I've forewarned her that I can't guarantee the funds will be there for her.

Jul 27, 2008 11:33 PM #3
Rainmaker
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Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Kris, I'm definitely not happy to see these programs go away. Nehemiah and Ameridream our huge in my area. Selling a house is just getting harder and harder for my sellers. 

Jul 27, 2008 11:38 PM #4
Rainer
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Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Bryant:  I'm sick about it.  I'm also feeling sorry for home sellers.  I'm sure you'll be curious to see what is going to happen this fall and winter, but I bet we could predict the outcome of this without a crysal ball...

Jul 27, 2008 11:56 PM #6
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Teri Eckholm
Boardman Realty - White Bear Lake, MN
REALTOR Serving Mpls/St Paul North & East Metro

Kris--I just finished my post for the day...On the exact same topic! It is sad because these programs have been instrumental in starting the chain reaction in the real estate market recovery. Coming up with a down payment is going to be tough in tough economic times!

Jul 28, 2008 01:09 AM #7
Rainmaker
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Jackie Cross
Real Living All Florida Realty - Port St Lucie, FL

One of my buyers also had the money tucked away, could afford the downpayment but used Nehemiah instead.  She was a divorced mother of 2 teenagers of who were or woud be going to college.  Even with the grant programs they would be able to get I am sure she will need to use some of that monies for them.  And now at least they have a home.

Jul 28, 2008 01:17 AM #8
Rainmaker
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Kris, I'm sure this is going to involve huge changes....and I would call keeping money aside for emergencies very smart as well!

Jul 28, 2008 03:05 AM #9
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Mike Mitchell
Real Living Kee Realty - Saint Clair Shores, MI
REALTOR (R)

Kris, I heard the thought process behind this is that most of the gift programs end in foreclosure. I don't know if the stats are true or not. I think it is great program and have had many buyers utilize it, and like you, most of my buyers could have put the money down, but wanted to still have a savings, just in case. Eliminating this program is definetely not going to help our market recover.

Jul 28, 2008 04:28 AM #10
Ambassador
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TeamCHI - Complete Home Inspections, Inc.
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Home Inspectons - Nashville, TN area - 615.661.029

Kris, I take it that this is a new change to the mortgage laws?

Jul 28, 2008 09:28 PM #11
Rainer
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Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

Teri:   (I'm going to jump over and read your post )  You're right, with the economic times it is going to be tougher for first time home buyers especially to have the extra cash flow to put aside for the down payment and emergencies.  I'm afraid to see what is going to happen this fall and winter..

Jackie: Your story is exactly what I'm ranting about, thank you!  Your buyer was smart (kept the money aside) and utilized what I feel is an outstanding program. 

Carole:  Every week it seems like there is a new change to our real estate market - and a new challenge. This hurts home buyers in many ways and I'm sad to see it being implemented. 

Mike:  I've wracked my brain (and consulted my database) and I don't have one homeowner who used this program end up in foreclosure.  I'd be interested to hear from you and others in our area if your clients were also using this program wisely and not one of the statistics that the government is throwing at us.

Michael:  Yes, many new changes (and challenges).  Not all of them smart in my opinion.

Jul 28, 2008 11:13 PM #12
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Kris Wales

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