Downpayment gift... or payment assistance

Marisal,
Ours was tax deductible to the seller also. The title company lady told me a lot... more than she should've I think, but they really like my seller. I can't remember the name of the group or charity or whatever that did ours.. I'll have to try to remember to look.

Just because someone uses this type of program doesn't mean that the price of the place has to increase. Our balance came in at way less than the asking price... after the seller knocked 9,000 off and did the down payment thing for us... we paid out about $500 and financed about 9,500 less than the original asking price. Our taxes aren't based on what we bought for either.

I would say call title companies in the area you are looking and ask if maybe they know of someone who buys and sells as a hobby or something... I'd just tell them you don't really want to use a realtor... and was hoping they might could recommend someone to check with. Our title company would recommend this seller without even thinking I believe. That or for sale by owner types.

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“Don't wait for a light to appear at the end of the tunnel, stride down there and light the bloody thing yourself.” - Sara Henderson

I was talking to someone else about this topic and they said it was designed solely to get around the rules saying that the seller can't loan money for the down payment to the buyer. And that most sellers get their asking price, which doesn't happen except in really hot real estate markets.

As many of you know, whenever you get a house loan, they want to know where the down payment comes from, and if it is not from your own bank account or stock you sell or whatever, you have to sign a statement under penalty of perjury that it is a gift, not a loan. Some people sign loan agreements with family for this down, then still say it was a gift. Guess what? If you don't pay your family back, they can't come after you in court, because you signed that little piece of paper with your main loan.

How this company can even think of itself as a charity is just wrong. Like Jena said, there has to be a more honest way of achieving the goal of more widespread homeownership.

Well I was wrong we financed 9700 less than asking. Paid 475 to the mortgage co, 25 deposit and 25.03 to title company. Still dang good I think.

The name of the "group" I say "group" because I really don't think these fit the definition of charity... was American Family Gift Fund.

And yes they seem to be a loop hole for the seller and buyer to work through.

We came out here to look at another property and as we were leaving we saw this place and jotted down the number. The seller had just been here showing it to someone else... she wanted it... he didn't know for sure so they were thinking about it. He came back and showed it to us the next day after saying on the phone during the second call between us he could get closer to the amount we wanted to pay. Saw the place.. told him we loved it.. he said if he didn't replace the carpet we could have it for the price we wanted. 9,000 less than his asking price... not a bad "discount" for taking carpet with all of three stains on it. They later called him saying that they wanted it but we already had our paperwork rolling. Everything fell right into place.... we are very lucky.... it was just meant to be.

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“Don't wait for a light to appear at the end of the tunnel, stride down there and light the bloody thing yourself.” - Sara Henderson