Info for First Time Buyers

I don’t think I’ve mentioned it yet, but I have a new manager at my office. Her name is Jesi Wolnik and she’s been a very successful Realtor for the last 6 or 7 years. Last year she achieved Centurion status, which meant she brought in more than $190,000 in gross closed commissions last year. She has tons of energy and experience and I am learning tons.

Anyway, I wanted to bring her up because yesterday at our weekly sales meeting she schooled us in the basics of a program I think will be very useful in the future. It’s called Ameridream and it allows first time buyers with no cash for a down payment, to obtain funding through government insured loans (FHA loans). An FHA loan can be much easier for people with little or no credit to qualify for, but it requires a 3% down payment from the buyer. This down payment, however, may be ‘gifted’ to the buyer. In comes Ameridream. Ameridream is a nonprofit organization that acts as a filter for these ‘gifts’ of down payments. If a buyer finds a house he wants to buy for $200K, but doesn’t have the $6K to put down, he can offer the seller $200K and ask that the seller make a $6K donation to Ameridream in his name. Ameridream will then ‘gift’ that $6K back to the buyer so he can make the down payment to buy the house and obtain the FHA loan. Yes, the seller will really be getting $194K for the house, but in this buyer’s market we’re currently experiencing, many sellers are willing to lower their price or help out with closing costs. It can easily be a win/win situation.

Obviously this program isn’t perfect for everyone, but it is something to keep in mind for new buyers. The current cap on FHA loans is $254,400, so if you’re short on cash and looking to buy under this number, keep Ameridream in mind.