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How does the grant program work?
This program is available to anyone desiring to be a homeowner and can qualify for a loan to support the purchase price. It doesn’t matter if you have previously owned a home, however this purchase needs to be owner occupied, not a vacation home, second home or a rental. We work with local non-profit agencies that make these grants available to home buyers. These non-profit agencies will gift 3% of your down payment. There is no repayment for this gift ever. In addition, most of our preferred agents have been successful in getting most, if not all of the buyers closing costs paid for by the seller. This means that you move in with instant equity and with little if any out of pocket expenses. This program allows you to purchase any property that is listed for sale including single family residences, condominiums, townhouses, manufactured homes on owned property or any 2-4 unit dwelling.
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Where do the non-profit agencies get their money to keep operating and give grants to home buyers?
The selected non-profit agency will wire to escrow your down payment (3%) prior to closing. After the transaction has closed, escrow will forward 4% of the final sales price from the seller to the non- profit agency. The seller agreed, when you offer to buy the house was accepted, to donate 4% of the sales price to the non-profit organization. The down payment of 3% that you received was taken from and existing pool of funds collected from previous sellers that helped out home buyers just like you. The extra 1% is used as a processing fee to balance the costs of processing your grant.
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Why would a seller be willing to donate to the non-profit agency? What’s in it for them?
Most sellers are motivated to sell their homes and have already made up their minds how much they are willing to negotiate from the original sales price. Occasionally, the sales price will be increased if the seller doesn’t have equity necessary to contribute back to the grant program. With this program, FHA will not accept a sales price higher then the marketable value of the property.
Sellers have many distinct advantages of selling their property utilizing this program. First, the home becomes available to many prospective home buyers, such as yourself, that need a grant for their down payment or just want to invest their money elsewhere. These homebuyers, like yourself, have good jobs, good credit, but don’t have the necessary cash reserves needed for the down payment and closing costs on a home purchase. Secondly, the sale of the home can close very quickly because all of our home buyers are pre-approved, so a home seller knows that you are serious with your offer to buy their home. Third, the seller has many advantages to giving back to the non-profit organization, one is a deduction for the cost to sell the home. Seller’s should always seek professional tax advice to gain knowledge of all the deductions available.
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Does any part of the grant need to repaid?
No, this is a grant that can not be repaid. The seller gains advantages from their contribution to the non-profit organization. A buyer that wishes to give to the program to help out other homebuyers that need our assistance is not allowed to give to the program. If they chose to sell their home, they can sell using WAHomeGrants.com and help many homebuyers that might not have ever seen their home without a down payment grant.
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We’ve had a few credit problems in the past, will this prevent us from getting a house and a down payment grant from WAHomeGrants.com?
On this program, the underwriters look at the past two years credit history, with a emphasizes on the last 12 months. If, in the past 12 months you have had a few late payments and have a good reason for them then we can get you approved. If you have had a Chapter 7 bankruptcy that has been discharged for at least 24 months and newly established credit with a great payment history we can get you approved. If you have had a Chapter 13 Bankruptcy and it has been discharged for 12 months and newly established credit and a great payment history we can get you approved. If you have multiple late payments and open judgments or collections that you can't pay-off, we can't get you approved at this time.
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How much money are we going to need to complete this transaction?
There are some out-of-pocket expenses that all prospective buyers will need to consider. When you make an offer on the house you want to buy a earnest money deposit is required. This can range from $500 to $1000. This shows the buyer that you are serious with your offer to buy. When the seller accepts your offer to buy you will want to order an inspection of the property. The property inspector will look for any defects that would normally be over seen by a prospective home buyer. The cost for an inspection will be about $150-$250, a small price to pay to protect your largest investment. After you have reviewed your home inspection report and are satisfied with the findings and resolution, then the mortgage lender will ask you for a deposit of $400, which is a deposit for the appraisal. This is a third party charge that the lender can not pay for upfront. This $400 will be credited back to you at closing if the seller agrees to pay your closing costs.
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Can we choose our own realtor for this transaction?
You are more then welcome to chose your own Real Estate Agent. WAHomeGrants.com needs the name and phone number of the agent as soon as you know who you are working with. There is essential information that is needed to be communicated between the agent and the lender. It is advised and recommended to chose from our list or Preferred Agents to ensure a smooth and enjoyable home purchase.
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How long does this process take?
Once you complete the grant application and submit it, a response to your request will be sent to you within 24 hours. If approved, your will be asked to complete the secure on line mortgage application. When the application is completed and submitted, it will take 36-48 hours for your loan to be processed. Once your loan approval is received you will be given a user name and password to complete your property profile. At this time you decide to either to work with one of our Preferred Real Estate Agents or to use someone you know. Once that is established a loan approval letter will be given to that agent. This letter will show a seller that you are serious and are approved for a loan to cover the cost of their home. Once your offer to purchase a property has been accepted by a seller, you will meet with the lender to deliver all necessary paper work needed to close your loan. This complete process can get you into your new home in as little as 20 days!
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What kind of loan programs are available for us?
You have three choices, a 30 year fixed, a 15 year fixed and a one year adjustable rate mortgage. Each loan program has distinct advantages. Please contact us with any questions that you have regarding loan programs.
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How can we get our mortgage insurance reduced?
In comparison to a conventional 100% Loan To Value program, the mortgage insurance through our program is almost half of what a conventional 100% program will charge. In comparison to a conventional 3% down program you will pay .20% less in monthly mortgage insurance and about .25% to .50% less in interest rate. Please contact us if you have any further questions.
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