Zero Down Payment Still an Option for Dothan Home Buyers
November 5th, 2007 - Categories: Buying a home in the Dothan area, Financing
By: Charles Woodall
http://www.dothanhomesearch.com
Various down payment assistance programs available for FHA loans were set to go away on October 31, 2007. However, according to an email forwarded to me that originated from the desk of Joel Pate, Founder of the American Family Funds Down Payment Gift Program, the program was granted an extension by a Federal Court in Washington D.C. to continue to offer down payment gifts through March 30, 2008. It is probably safe to assume that other such programs, such as Ameridream and The Nehemiah Foundation, have been granted an extension as well.
There are many opinions regarding these type of programs. I know that I have worked with several buyers over the past few years that have used one of these programs and are now delighted to be owning a home. I also understand the flip side, that many times the sale price gets inflated and the buyer is assuming very little risk. I think each situation is unique and every buyer should work with a real estate and mortgage professional to determine the best route for them.
Below are links to more detailed coverage of this news.
Rob from 3 Pounds of Real Estate
Chris from the St. Louis Real Estate Voice
Lynnette Khalfani-Cox does a good job on her blog explaining the advantages of these down payment assistance programs at themoneycoach.net.
If you are interested in the possibility of buying a home with no money down, gives us a call or send us an email. We are in the market everyday and will be happy to answer any questions you may have.
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A few years ago, when we were in a similar market, I used the Nehemiah Program - not officially, but as a guideline for structuring offers. It was very effective, and the listing agents were happy not to have to go through another layer of underwriting between contract and settlement. So, even if/when these programs expire, they can still benefit you and your clients.
Charles - Thanks for the update on this. Having a real mortgage expert in this market makes all the difference. I’m sure homebuyers will appreciate getting this kind of expert advice at your upcoming Home Buyer Seminar - Good luck with it - Cyndee Haydon
[...] For those of you that hadn’t heard, there are still folks in Dothan that are buying houses. One of the financing tools they are continuing to use are down payment gift programs such as Ameridream. Charles wrote a post on this a couple of months back. [...]