First Time Buyer

[amftx]

First of all, killer forum.

Second, I'm looking to buy my first home and I was wondering if anyone could point out any good resources or buyers agents to work with. I've heard that first time buyers can get grants of up to $30k or more from Federal, state, and local programs. I'm looking for a newer townhouse or condo somewhere near downtown, and had thought I wouldn't be able to afford it but since I've heard of all of the grant programs I know I can do it.

Any general advise? Websites for local/fed. stuff? Contact info for a good buyers agent?

[rps324]

There were grant programs on some of the moderate priced housing they built in 4th ward. There are strings attached. You cannot sell the property for X number of years without incurring stiff penalties. I am sure it differs depending on the program. Many programs may limit where & what types of properties you can buy.

A lot of the grant programs, such as HOH and others can run out of money mid-stream also, tying up transactions and dragging closings out for several months. It is a HUGE hassle to deal with, but it can be a boost if you can qualify, but don't make over the income caps, and the sun and the moon and the stars line up to make it all work.

I will never handle another one of those transactions myself.

100% financing is available for people with pretty marginal credit. You can also get a seller's contribution, usually 3%, sometimes up to 6% of the sales price depending upon the lender, to help cover closing costs. I would not rule out a more conventional path.

[Guest danax]

First of all, killer forum.

Second, I'm looking to buy my first home and I was wondering if anyone could point out any good resources or buyers agents to work with. I've heard that first time buyers can get grants of up to $30k or more from Federal, state, and local programs. I'm looking for a newer townhouse or condo somewhere near downtown, and had thought I wouldn't be able to afford it but since I've heard of all of the grant programs I know I can do it.

Any general advise? Websites for local/fed. stuff? Contact info for a good buyers agent?

<{POST_SNAPBACK}>

Welcome to the forum, amftx.

The "grants" that I know of are Housing Opportunities of Houston, which is really a "soft 2nd lien", meaning, if you have no late payments and don't sell the home for the full 5 year term, the loan is forgiven. During the 5 years you aren't making payments on it either, so it ends up being free. You have to make less than 80% of median income, I believe and there's a qualification process that's a bit more entailed than a standard home loan application. There are a few lenders that specialize in it. However, I hear they're out of money for this year.

Another is a Harris Co. program, I don't remember the acronym, but it's a long process and the home has to be built after 1979 and be priced less than something like 120K. I think their's is a soft 2nd also and they give around 20-25K.

Other than that, there are other so-called gift programs that just wire the money at closing to the buyer but extract the same amount from the seller, plus a fee. Therefore, the seller usually has to raise the sales price beforehand to make it work for everyone.

100% financing is fairly easy these days. Some builders will kick in up to 6% of the sales price towards paying your closing costs so it's very possible to buy a home and walk in with $0 out of pocket. Have your agent hold out for the full 6% if you have little cash to close with.

As for buyer's agents. find one who knows the areas and housing types you are looking for. Also, there are some realty companies that also do loans and will refund you 1 or 2% of the sales price after closing. So, it's actually possible to get in for $0 and have money to buy furniture the next day or so. I know of one company that specializes in this. PM me if you would like their info. Not sure if they are experts on inner-loop townhomes though.

Best of luck to you.

Whoops. Didn't mean to mimic your post, rps. Guess we were posting at the same time.

Edited July 27, 2005 by danax

[banking214]

Most agencies that I am aware of are out of bond money. Typically, towars summer and the end of the year, money is hard to come by. You really do have a ton of options. For someone buying a home for the first time, it can be overwhelming. For the most part, your broker or builder will be an excellent source. Just make sure you get good references on both. I hate to say, but there are a lot of brokers that just want the green. Much will also depend on your FICO score. If you want a full 6%, either have a 680 or better or go FHA. You can still go 6% with less than 680, but typically you are going to have a higher rate. Check out these sites for more information on DPA.

http://www.getdownpayment.com/

http://www.ameridream.org/

http://www.buyersfund.com/buyers/index.asp

http://www.hud.gov/funds/ (This is probably the most informative site)

FYI - It is important to know that not all lenders will accepts these programs. Some programs are also restricted to certain geographic areas. Some even limit you if your income exceeds a certain percent. I could go on for some time, just don't want to really bore you.

[Scharpe St Guy]

I will second the thoughts of RPS to you. But I would also suggest that you may want to seek a home with a detached rental located in the East End. There are a couple of reasons for this.

This area is experiencing a revitalation which is always good from a property value standpoint and as your main investment. If you find a property with detached Garage Apartment then you can still purchase the home using the Conventional route of financing but you will be able to offset your monthly mortgage payment consisting of Principal, Interest, Taxes and Insurance then tack on the Utilities such as Gas, Electric, Phone, Cable, Internet, etc....

As a first time homebuyer you should seek to buy smart and put as little down due to the low interest rates but then also seek to have the property pay for itself or at least help you pay for it by rental and property value appreciation.

If your seeking a good realtor I would suggest RPS he his very active on here and I have seen his listings on MLS and he does a good job describing the properties and posting a full 16pictures. Good Luck.

Scharpe St. Guy

[amftx]

Thanks for the input everyone. Does anyone know when the year starts over for all of the "grant" programs? I heard it's in October, and that there is a new program coming to Houston/Harris Co.

In my opinion it would seem silly to not get as much assistance as I can the first time. I understand most of the time limits, etc. I'm looking to spend at least 5 years in the place so it would basically be free money/equity after the terms are met.. and I can get something much nicer when I include the programs into the total cost.

Thanks again!