Down Payment Assistance Up to $15,000

(My Original Blog Post: http://www.minnesotainvestors.com/blog/down-payment-assistance-up-to-15000/)

NEW Federal Funds Program

6/2/2009

Funds Available:

$765,000.00

Estimate Federal Down Payment Assistance:

$14,999.00

Estimate Offer Price:

$100,000.00

(Line 31) Estimate Base Loan Amount: (add plus MIP after this number)

$85,001.00

These funds are to be used for a First Time Home Buyer with Low to Moderate Income if buying a home in the 11 county metro area. The property must meet or exceed the minimum property standards set by FHA and the home will be subject to a separate trained Home Inspector and chosen off of an approved Inspector roster.

Standard Requirements:

Please check yes to buyer elect to have a home inspection because it is a requirement of the loan approval.

Access to the Attic is required to verify acceptable ventilation of the structure.

If the home is a foreclosure the property must be vacant when the home inspector & the appraiser visit the property & the home must of been foreclosed on before the date of the purchase agreement.  If this is an existing home including a short sale, and people are living in it, it must be owner occupants and NOT RENTAL. If it is new construction, it must be an existing model, and not a to be built home. Closing must take place with in 30 days of reservation of funds. Vacant homes are ok, if they show up as vacant and are NOT rental properties. Condominiums and town homes must of been built after 1978.

A working stove and refrigerator must be in the property at the time of the home inspection.

-The stove and refrigerator do not have to be in the kitchen. They can be in the garage as long as they are working. They can be removed after the home inspection is completed or left on the curb or disposed of.

The Sellers will be paying for the borrowers closing costs and prepaid items up to the 6% of the sales price at the time of closing. (Included in the closing cost will be the fee for the home inspection and will be paid by the sellers out of the 6%)

Line 30 on page 1 of purchase agreement:    Percentage Down

14.9990000%

The Down payment funds will be placed as a silent second lien on the home at the funding of the first mortgage. Realtors-On the purchase agreement, check line 33 (a first mortgage with subordinate financing)

For your financing type please check line 35:   FHA

If the home buyer qualifies for the full $14,999 at closing and lives in the property for 5 years and one day as their primary residence $10,499 will be forgiven and the remainder of the funds will be paid back when the home is sold or if the home owners ever cease to occupy the property. The $14,999 silent second lien has NO accruing interest charges or monthly payments.

Repair escrows are not permitted and all repairs must be complete prior to closing.   www.RonOrr.com