First-time homebuyers can get financial help

[Crewleader]

Loans, funds available for down payments

Danny Richards plans to close on his first home this month. The Indialantic native was eligible for $25,000 in assistance from Brevard County's Community Housing Initiative, which provides funds to first-time buyers. (Christina Stuart, FLORIDA TODAY)

http://www.floridatoday.com/article/20081214/BUSINESS/812140309&referrer=FRONTPAGECAROUSEL

[Merlot]

1. Any of these programs in CA?

I'm a first time buyer and so far haven't found any of these programs.

Spoke wiht a wells fargo guy who didn't seem to want to be botherd with my small mortgage. I told him I was waiting till after the first of hte year to see if the rate was really going to go as slow as 4.5

He says 4.5 might be nice, but right now rates are at 5-something and that's really low.

Ok, I'm a first time buyer, but even I know how many thousands of dollars that half-percent will be over the course of the loan. Apparently he thinks I don't know basic math?

I'd like to find someone who specialized in first-time buyers.

And I hate wells fargo anyhow.

[marketcrazy1]

2. to the happy new homeowner

you`re welcome! ( from the taxpayers who paid your down payment ) and who will own your loan ( since there is no PMI only the government will buy that paper ) and who will assume the losses should you default! ( some would say if you cant afford the down payment you cant afford the house ) flame away!!!!

[Merlot]

3. I can afford the downpayment just fine, thank you

I'd rather have my tax money go to someone's new home than a junket for bank executives. At least with the home their is some return.

[2Design]

4. aren't these loans that have to be paid back n/t

[Citizen Number 9]

5. Doesn't seem like the kind of buyer

that these funds were intended to help.

But hey, if they have a shortage of qualified low-income applicants, then I guess it is good that he's moving a residence. One less empty house on the market, only what, a few million to go before we get a demand going again?

Anyone else ready to step up?

[marketcrazy1]

6. this is the kind of thing

that got us into this mess!! DAP for people who cant or wont SAVE for a down payment. plus it props up home values by increasing the price of comps, so that the next buyer in the neighborhood who HAS saved HIS OWN cash for the down payment ends up paying MORE for the house next door!

[Citizen Number 9]

7. At first, it sounded a bit like "gifting"

if you've ever heard of it.

That was a program based on the ability of someone to "gift" a potential buyer enough for a downpayment. Where it went wrong is builders began "donating" $10K or $20K to a gifting agency for each house they had completed and wanted to sell. Then, the agency would find a qualified buyer and "gift" the downpayment (less a "marketing" cut for themselves, of course) to them. All the builder had to do was bump the selling price by the amount of the "donation" or "gift". Of course, when the builder's home then sold, all they needed was the payoff from the bank providing the mortgage. It all depended on the property appraising for the inflated amount, which it often did over the last 5 or 6 years.

This does appear to be different if the funds trace back to the federal programs properly. It looks like this buyer was the only candidate they had left that actually met the qualifications. I still don't think it was how the program was conceived, however.

[marketcrazy1]

8. if the

buyer qualified for the house WITHOUT the assistance then it was a giveaway ( free money from taxpayers in one form or another ) and if the buyer COULD NOT qualify for the loan without the assistance then he/she should not have gotten a loan. in any event this "gift" allowed THIS buyer to avoid PMI wich means this loan will be backed by one of the government loan companies ( taxpayer on the hook again ) down payment "assistance" in whatever form used to be illegal ( or non qualifying ) and should be again..