Clark County WA Real Estate Blog

There is a new ‘buyer bonus program’ available through Suntrust Mortgage. This program allows the seller to contribute up to 6% of the loan amount towards the buyers first six months mortgage payments. Here’s an example:

With less than 10% downpayment on a $200,000 loan, the maximum seller contribution is 3% or  $6,000. If you use this weeks interest rate of 5.875% the buyers mortgage payment would be $1183.30. If we divide $6,000 by $1,183.30,  we see that the seller can make up to 5 Buyer Bonus Payments utilizing the Suntrust Mortgage Buyer Bonus program. 

How It Helps Buyers
If you are a buyer with 3% down, this could really give you a helping hand during the first six months, as you are settling into your first home.  Since you can save mortgage payments for the first five months, you now have extra money to spend on household furnishing.

How It Helps Sellers
Anything you can do to increase the pool of buyers in today’s market is a positive.  This program should be especially attractive to first time home buyers, who could us the assistance with their mortgage payments.

First time homebuyers now have another program that they can use to get their first home.  That’s a good thing!

First time homebuyers have a friend in the Nehemiah downpayment assistance program.

What is The Nehemiah Program and how does it work?
The Nehemiah Program provides gift funds for downpayment and closing costs to qualified homebuyers who use an FHA insured mortgage or conventional loan. Gift funds up to 6% of the final contract sales price are available for the purchase of a participating home. These gift funds never have to be repaid. There are no buyer income limitations and no area restrictions. For the buyer to be eligible for the gift, the seller must make a contribution to Nehemiah Corporation of America that is equal to the gift amount, plus pay a small processing fee.

Why would a seller want to help me?
Sellers choose The Nehemiah Program to dramatically increase the number of qualified candidates that would be eligible to purchase their home. The simple factor of “supply and demand” goes to work for participating sellers to help increase their home’s market value.

What are the basic program requirements?

• Both the homebuyer and seller must agree to participate in the Nehemiah Program,
• Homebuyer must use an FHA loan or a conventional loan that allows gifts from charitable organizations
• Homebuyer must purchase a Nehemiah participating home
• Homebuyer must be the primary occupant of the property.

So, if you are a first time homebuyer, and wondering how you are going to come up with the downpayment, now you have an option. 

Once a home has been foreclosed on, and is owned by the bank, it is called REO or Real Estate Owned ‘by the bank’. These properties typically are in need of some repair, and have often been neglected by the previous owner.

Banks are not in the real estate business, and their only concern is getting it off their balance sheet. If you are an investor, or a savy buyer, this can work to you advantage.

Make sure you do your homework, and compare the REO to other sold properties in the neighborhood. I would recommend at least 3 other solds within the last 6 months. Then, take a look at how much you will have to invest in updating, repairs, and carrying costs before putting it back on the market. If you still have a good spread between comps and your costs, a property might be a good investment for you.