| The subprime mortgage real estate fiasco has | | | | disabilities.100% financing is available with 30-40 year |
| created a glut of residential real estate in the real | | | | fixed rates. Check out the details at [ |
| estate market. Foreclosures are on the rise and it | | | | These funds, in addition to other government funding |
| doesn't look like the end is in sight for at least another | | | | sources, are made available through federal, state and |
| year. Thousands of home owners are losing their | | | | local government agencies that provide down |
| homes because adjustable mortgage rates have | | | | payment assistance to their citizens on a case by |
| adjusted upward and caused increases of monthly | | | | case basis. |
| mortgage payments so high that the affected home | | | | Every major city and county has one of these |
| owners just can't make the payments. It is inevitable, | | | | programs. One need only exercise a little initiative and |
| under these circumstances that many homes go into | | | | these funds can be acquired. Contact your local |
| foreclosure and banks have to take them back. | | | | housing authority, city managers office or county |
| While it is unfortunate that many home owners are | | | | administration department to find out about them and |
| losing their homes, the opposite and upside effect is | | | | how to apply. |
| that the real estate market is now a boom for the first | | | | 2. Use non-profit agency down payment assistance |
| time home buyer. | | | | Another little known, but long existing opportunity for |
| Mortgage interest rates are still low and banks and real | | | | first time home buyers to acquire help with down |
| estate lending institutions have 30-40 year fixed loans | | | | payment assistance is the numerous numbers of |
| for home buyers. With home values in many areas | | | | non-profit agencies around the country that provide |
| around the country, such as California, plummeting | | | | free down payment assistance to home buyers. The |
| anywhere from 30-50 percent of what they were a | | | | Community Reinvestment Act of 1977, enacted by |
| year ago, the market is wide open for buyers who | | | | Congress in 1977 and revised in 1995, requires banks |
| have never owed a home and would like to do so | | | | located within identified communities to make loans and |
| now. | | | | reinvest the depositors' deposits within that community. |
| Lending institutions and sellers are very motivated now | | | | For decades now and continuing into the future banks |
| and are readily lending their ears to home buyers | | | | have been making huge amounts of funds available to |
| saying "lets make a deal" and deal they will. Here are | | | | invest in targeted communities. However, the availability |
| some of the innovative and sensible ways home | | | | of the funds was not publicized in a significant way |
| buyers can now acquire a home of their own when | | | | and many people did not and still do not know about |
| they are armed with some real estate homebuyer | | | | these funds. Many non-profit agencies became aware |
| education. | | | | that they could help in the community revitalization |
| 1. Use government grants and loans for down | | | | effort by creating a means whereby the banks could |
| payment assistance. | | | | channel the funds through various home assistance |
| The federal government in 2003 established the | | | | programs that non-profits created. The non-profits that |
| American Dream Down Payment Act. This federal | | | | specialize in this type of program have grown over the |
| law has allocated $200 Million a year since 2003 to | | | | years. Some are very large and are nation wide such |
| assist with arranging down payments for first time | | | | as the Nehemiah Corporation - |
| home buyers. This is a good indication of just how | | | | They get funding from the banks via the Community |
| serious the government is about helping Americans | | | | Reinvestment Act and other funding sources and then |
| make the American dream of home ownership come | | | | provide for down payment assistance and other |
| true. | | | | housing assistance to persons desiring to own a home. |
| Fannie Mae, one of the many federally supported | | | | One of the high points of these programs is that the |
| programs for home buyers has programs such as the | | | | funding is often times not limited to first time home |
| MyCommunity Fixed Rate Mortgage. This unique | | | | buyers and certainly is not limited to only low income |
| program is ideally suited for the first time home buyer. | | | | home buyers. This creates yet another source of |
| It provides for low down payment, high loan to value | | | | down payment assistance for the prospective home |
| with broad flexibility, including nontraditional credit | | | | buyer. Given the numerous avenues of funding to |
| considerations allowing for the buyer to qualify for the | | | | assist in buying a home and the present market swing |
| loan. It also has special financial options to serve public | | | | in favor of home buyers, buyers are now firmly in the |
| servant professions such as teachers, police officers, | | | | driver's seat. |
| firefighters and health care workers, and people with | | | | |