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Down payment assistance is provided to homebuyers
through various gift fund programs and is becoming increasingly popular,
especially with first-time homebuyers. Funds provided for down payment assistance
are “gift funds” and
do not have to be repaid, which means there's no additional expense
on your part in the purchase of a home.
Both buyers and sellers can qualify for this program and just need to meet
a few simple requirements. Homes must be insurable and pass all FHA inspections
and must appraise for the final contract price or higher. Lenders can use
down payment assistance programs with any type of loan; however, the seller/investor
must accept down payment gift funds from the non-profit entities offering
this service.
Your Realtor( should insure that the Seller/Builder signs the participating
home service fee agreement (forms vary per non-profit entity so be sure to
ask your agent about this agreement), and must be signed prior to or at the
time of closing. The signing of this document authorizes the gift provider
to deduct the fees associated with this service from the seller's funds at
closing. Should the sale not close, and the buyer not purchase the home,
there's no obligation on the part of the buyer or seller.
To learn more about down payment assistance programs, visit the sites of
these providers for more information: your Realtor( should insure that
the Seller/Builder signs the participating home service fee
agreement (forms vary per non-profit entity so be sure to ask your
agent about this agreement), and must be signed prior to or at the
time of closing. The signing of this document authorizes the gift
provider to deduct the fees associated with this service from the
seller's funds at closing. Should the sale not close, and the buyer
not purchase the home, there's no obligation on the part of the
buyer or seller.
To learn more about down payment assistance programs, visit the sites of
these providers for more information:
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