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CHUGG
276 Posts |
 Posted - 05/13/2008 : 5:18:22 PM
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| I am starting to have to use alot of down payment assistance programs with the change of the market. I only know of Ameridream and Nia Mia (which I dont know much about. What is the best program to use and why? Thank you in advance for your help. |
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ADVISEUMORT
381 Posts |
Posted - 05/13/2008 : 5:23:24 PM
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| those are the two i consistenly use, nehemiah is the most popular |
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d_damiano
522 Posts |
Posted - 05/13/2008 : 7:10:06 PM
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quote:
Originally posted by CHUGG
I am starting to have to use alot of down payment assistance programs with the change of the market. I only know of Ameridream and Nia Mia (which I dont know much about. What is the best program to use and why? Thank you in advance for your help.
Take a look on the list of all of them at http://www.TheDownPaymentGuy.com
then take a look at the marketing available at http://www.TheDownPaymentGuyNetwork.com
I use the Grant America Program at http://www.FHADPA.com
for 3 reasons
1. It's $350.00 so I save $150.00 for my seller.
2. It takes me 2 minutes to do everything I need to do online (gift letter and enrollment form)
3. It's not a non profit, but an Indian Nation giving the gift so I can advertise New Gov't Grant program gives you the down payment and closing costs.
Money is always there, someone always answers the phones if I have any questions or problems.
Dennis |
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CHUGG
276 Posts |
Posted - 05/13/2008 : 7:38:18 PM
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| Wow Dennis that was some great info! Thank you so much for taking the time to answer my question. I am going to look at that right now. |
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patty3124
97 Posts |
Posted - 05/14/2008 : 12:17:51 AM
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| I also use chadap for FHA. alot more work than the others mentioned but when you dont have a seller that wants to participate then it is an option. i alos have used the school facility program. |
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patty3124
97 Posts |
Posted - 05/14/2008 : 12:19:07 AM
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| Is the idian nation DAP a seller paid dap? |
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KHufford
5054 Posts |
Posted - 05/14/2008 : 01:28:25 AM
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"Nia Mia" ?!! Now thats funny!
Sounds like a Spanish romance film or something..
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jlgyork
286 Posts |
Posted - 05/14/2008 : 09:24:17 AM
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| For the Grant America Program, is the only fee $350 being paid by the seller? Does the borrower/buyer have to pay anything like an application fee or anything. This question applies to other DPA companies like Ameridream and Nehemiah also. |
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the_mortgage_guy
802 Posts |
Posted - 05/14/2008 : 10:08:14 AM
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| It usually gets more expensive teh larger the down payment gets from those sources. |
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blarney27
149 Posts |
Posted - 05/14/2008 : 11:44:02 AM
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| Anyone know which lenders will allow DPA under fannie/freddie loans? |
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regineia
327 Posts |
Posted - 05/15/2008 : 11:19:55 AM
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| Good question, What lender can accept it? |
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Travis Du Bois
588 Posts |
Posted - 05/15/2008 : 11:22:49 AM
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Any one use this one?
http://www.homedownpayment.org/
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lucky1s
3339 Posts |
Posted - 05/15/2008 : 11:28:22 AM
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quote:
Originally posted by blarney27
Anyone know which lenders will allow DPA under fannie/freddie loans?
Nia Mia has a great webcast on demand.
I sat through it yesterday.
They said dont push the envelope, stick with FHA.
Though I heard you could use it with USDA. |
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CHUGG
276 Posts |
Posted - 05/15/2008 : 1:21:43 PM
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| I was told the DPA with the indian nation does not do first time homebuyers. Is this correct? |
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808
1859 Posts |
Posted - 05/15/2008 : 1:52:54 PM
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quote:
Originally posted by CHUGG
I am starting to have to use alot of down payment assistance programs with the change of the market. I only know of Ameridream and Nia Mia (which I dont know much about. What is the best program to use and why? Thank you in advance for your help.
whoever you use always check w the lender to make sure they'll go w said DPA company. I always check w the AE or QC first before each submission and sales contract because their always adding and dropping companies like they do credit reporting agencies You don't want any 11th hr suprises and don't expect the underwriter to catch it. |
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MISSIE
60 Posts |
Posted - 05/16/2008 : 12:09:14 AM
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| Hart |
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djacobson
133 Posts |
Posted - 05/18/2008 : 12:25:12 PM
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| ameridream is another good one goes up to 10% to help approve those more tough FHA clients we allow all down payment assistance programs. We have a great 3/1 arm that qualifies on the start rate of 4.75 only adjusting 1% per year after the 3rd year and a margin of only 1.75%! Also our 30 year FHA is priced extremely well call or email for more information. |
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d_damiano
522 Posts |
Posted - 05/18/2008 : 5:35:46 PM
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quote:
Originally posted by CHUGG
I was told the DPA with the indian nation does not do first time homebuyers. Is this correct?
No not correct at all The Penobscot Indian Nation Grant America Program
http://www.FHADPA.com works with anyone. |
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d_damiano
522 Posts |
Posted - 05/18/2008 : 5:38:05 PM
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quote:
Originally posted by jlgyork
For the Grant America Program, is the only fee $350 being paid by the seller? Does the borrower/buyer have to pay anything like an application fee or anything. This question applies to other DPA companies like Ameridream and Nehemiah also.
Yes, the only fee is the administrative fee (paid by the seller or the loan officer or the Realtor) Plus of course replenishing what the amout of Down Payment from 3-10% |
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d_damiano
522 Posts |
Posted - 05/18/2008 : 5:39:13 PM
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quote:
Originally posted by blarney27
Anyone know which lenders will allow DPA under fannie/freddie loans?
Blarney you cannot use a seller funded DPA under Fannie/Freddie
you need to use an earned income program |
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subprime
3594 Posts |
Posted - 05/18/2008 : 6:26:26 PM
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| What is a earned income program? Wouldn't lenders want to see two years proof of that income? |
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d_damiano
522 Posts |
Posted - 05/18/2008 : 7:22:40 PM
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quote:
Originally posted by subprime
What is a earned income program? Wouldn't lenders want to see two years proof of that income?
Scott
It's a part time Job.
The borrower still has to qualify for the loan on their current job (2 years) and you can not use the part time income for their DTI.
But the asset that have earned (commission check) is deposited into ther savings account and you as the loan officer will receive a VOD and a VOE as well as the pay stub if the underwriter needs to see it. The part time income can be used as a legitimate source of funds for down payment, buying down the rate, paying off debt, building reserves, fixing up the house with new carpet or paint etc....
If you want to recommend to your client that they get a part time job and earn the funds they need (please be aware they will have to pay income taxes on this money) I can tell you about the easiest job they may ever have.
They become independant dealers and sell a membership to a property owner into the largest trade association of property owners in US called the Owners Alliance.
Memberships are $325.00 per month for up to 360 months and the sales commission they would receive is $292.50 per month
Take a 350k house buyer needs 35k down - he sells a 10 year membership for 39k to the seller and earns 35k.
Your buyer get his commission check within a few days of the sale, and the seller has the option to pay for the membership or defer their payment until the close of escrow.
click on this link http://www.dpguy.com/downpaymentguy/mkt/sellers/
It's not a down payment assistance program, but it is the only viable down payment solution for a conventional loan.
It get's really fun when you mix and match them.
I'm doing an FHA approved condo 60 units like this starting this week.
Condo is $159K
No Down Payment (3% DPA using Grant America)
No Closing Costs (3% seller concession)
Reduced Rates (other 3% from the allowable 6% seller concession to buy down the rate)
No HOA for 1 Year
No Mortgage payments for 1 Year (Both the HOA and the 1 year worth of payments + 20% income taxes will be income derived from the seller purchasing a 50 month membership at a cost of $16,550.00 with the buyer earning $14625.00
The $14625.00 will be put into a trust to pay the 12 monthly mortgage payments and the HOA fees as well as his income taxes on the additional income.
One good Radio and Print promotion that says live here with no payments for 1 year, no down payment and no closing costs and after 1 year a fixed low rate of only TBD but probably 4.75 % temporary buydown.
We hope all 60 will go in the first weekend or two
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bobabrahamson
84 Posts |
Posted - 05/19/2008 : 10:03:32 AM
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| You can use a DAP with the Fannie flex 100/97 program |
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d_damiano
522 Posts |
Posted - 05/19/2008 : 10:06:00 AM
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quote:
Originally posted by bobabrahamson
You can use a DAP with the Fannie flex 100/97 program
Bob, you can as per the fannie guidelines, but there is not a bank in the nation offering it, unless you know of one? |
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fastcrs
30 Posts |
Posted - 05/19/2008 : 2:14:17 PM
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| any one used or heard of the H.A.R.T. program its non proffit |
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blarney27
149 Posts |
Posted - 05/19/2008 : 2:15:46 PM
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quote:
Originally posted by d_damiano
quote:
Originally posted by bobabrahamson
You can use a DAP with the Fannie flex 100/97 program
Bob, you can as per the fannie guidelines, but there is not a bank in the nation offering it, unless you know of one?
I agree, can't find a single one myself. |
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subprime
3594 Posts |
Posted - 05/19/2008 : 4:51:03 PM
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quote:
Originally posted by d_damiano
quote:
Originally posted by subprime
What is a earned income program? Wouldn't lenders want to see two years proof of that income?
Scott
It's a part time Job.
The borrower still has to qualify for the loan on their current job (2 years) and you can not use the part time income for their DTI.
But the asset that have earned (commission check) is deposited into ther savings account and you as the loan officer will receive a VOD and a VOE as well as the pay stub if the underwriter needs to see it. The part time income can be used as a legitimate source of funds for down payment, buying down the rate, paying off debt, building reserves, fixing up the house with new carpet or paint etc....
If you want to recommend to your client that they get a part time job and earn the funds they need (please be aware they will have to pay income taxes on this money) I can tell you about the easiest job they may ever have.
They become independant dealers and sell a membership to a property owner into the largest trade association of property owners in US called the Owners Alliance.
Memberships are $325.00 per month for up to 360 months and the sales commission they would receive is $292.50 per month
Take a 350k house buyer needs 35k down - he sells a 10 year membership for 39k to the seller and earns 35k.
Your buyer get his commission check within a few days of the sale, and the seller has the option to pay for the membership or defer their payment until the close of escrow.
click on this link http://www.dpguy.com/downpaymentguy/mkt/sellers/
It's not a down payment assistance program, but it is the only viable down payment solution for a conventional loan.
It get's really fun when you mix and match them.
I'm doing an FHA approved condo 60 units like this starting this week.
Condo is $159K
No Down Payment (3% DPA using Grant America)
No Closing Costs (3% seller concession)
Reduced Rates (other 3% from the allowable 6% seller concession to buy down the rate)
No HOA for 1 Year
No Mortgage payments for 1 Year (Both the HOA and the 1 year worth of payments + 20% income taxes will be income derived from the seller purchasing a 50 month membership at a cost of $16,550.00 with the buyer earning $14625.00
The $14625.00 will be put into a trust to pay the 12 monthly mortgage payments and the HOA fees as well as his income taxes on the additional income.
One good Radio and Print promotion that says live here with no payments for 1 year, no down payment and no closing costs and after 1 year a fixed low rate of only TBD but probably 4.75 % temporary buydown.
We hope all 60 will go in the first weekend or two
That is a pretty interesting concept, does that earned income program work with most lenders? Well I guess lenders who would allow for the down payment to be unseasoned. Also, does there have to be equity in the property for that to work?
Two more questions, does the seller have to pay that membership cost or does it get paid out of closing? That is where the equity question would come into play.
Would this work for a N/O/O property or commercial property to use as the down payment?
Seems interesting, just never heard of this before for a down payment, seems like the source of funds issue would come up from lenders or the seasoning of the funds, pretty cool though, I like it |
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d_damiano
522 Posts |
Posted - 05/19/2008 : 5:26:52 PM
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Scott it works with all lenders because it's just a part time job. You just cant use the income for DTI for qualification. In fact any bank that turned down a loan just because they did not like the job would be discriminatory and breaking the law of the equal credit opportunity act.
The other thing is seasoning was put in place to make sure it was not a short term loan that the borrower would have to pay back. A Paycheck only needs to be sourced and verified (no seasoning on pay checks)
This works for any property and any loan type, and you don't need to limit it to down payment. It can be used for the borrower to earn additional income that can be used to buy down a rate, pay off their debts, have money to repair or fix up the house anyway they want, reserves, vacations...it's a paycheck and you have to pay income taxes on it, other than your wife no one can tell you how you want to spend it.
Now in regard to equity, it's easier to get a seller to buy a membership when they are making less of a profit than when it might be a loss. But there are times when everyone may take a loss on an investment. I have seen it used in divorce situations or they just need the cash quick, or they want to preserve what may be left of their credit.
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subprime
3594 Posts |
Posted - 05/19/2008 : 7:40:32 PM
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Thanks for the reply Dennis, I would like to talk to you more about this, I tried to email you through the forum, but it got kicked back.
Can you either email me your contact info throught the forum or call me tomorrow? I will go to your site tonight and read up a bit
Thanks for your help |
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d_damiano
522 Posts |
Posted - 05/19/2008 : 9:46:51 PM
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quote:
Originally posted by subprime
Thanks for the reply Dennis, I would like to talk to you more about this, I tried to email you through the forum, but it got kicked back.
Can you either email me your contact info throught the forum or call me tomorrow? I will go to your site tonight and read up a bit
Thanks for your help
No problem I'll give you a call tomorrow, the guy you will want to talk to who taught me and knows more about this than probably anyone is Marlo Newman at TheDownPaymentGuyNetwork.com
877-374-8942 |
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KHufford
5054 Posts |
Posted - 05/19/2008 : 9:48:07 PM
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The one I think is best....google it, its the best one out there by far...its called, "Savings Account"
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d_damiano
522 Posts |
Posted - 05/20/2008 : 09:15:18 AM
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quote:
Originally posted by KHufford
The one I think is best....google it, its the best one out there by far...its called, "Savings Account"
So true! |
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