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