How Gifts & Grants Work


The Contract Proposal
$100,000.00
Government Silent Second
($3,500.00)
Seller Concessions
($4,000.00)
Buyers Required Contribution to close
($500.00)
Closing Costs
$5,000.00
Sub Total – Buyer
Amount Due
$97,000.00
Amount of Loan @ 6% Fixed
97% LTV
$97,000.00

Congratulations, you just closed on a home for $500.00

Government with Gift

A buyer finds a home for $100,000.00. They qualify for $2000.00 in Government Assistance. Their Realtor® negotiate 4% in seller concessions and a $4000 dollar donation to a of charity of your choice. Here is how this transaction will break down:

 

The Contract Proposal
$100,000.00
Government Silent Second
($2,000.00)
Seller Concessions
($4,000.00)
Buyers Required Contribution to close
($500.00)
Seller Donation to Charity
$4,000.00
Charity Not-For-Profit
($4,000.00)
Closing Costs
$5,500.00
Sub Total – Buyer
Amount Due
$95,000.00
Amount of Loan @ 6% Fixed
95% LTV
$95,000.00

Congratulations, you just closed on a home for $500.00

We hope, after having reviewed these examples, you have a firm idea about using Down Payment Assistance, how it works and how it can help you. Even when you have challenged credit. Don’t Forget – Structure and Risk!

Thank you again for taking advantage of this information. Please don’t hesitate to recommend this site and get the word out about how to become a REAL home owner!

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