Today buyers are interested in sound market knowledge and understanding off their options.

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1 Introduction From first-time buyers* to move-up buyers waiting the market out! Today s market is diverse. We all witnessed the housing market crisis first hand and some of us where directly affected. Today buyers are interested in sound market knowledge and understanding off their options. Over the years I have adapted my services to provide homebuyers with more tools and information to help assist you in your decision making process. This information will hopefully explain to you more about down payment assistance programs and other options available to you to help you purchase a home and get out of the landlord trap!

2 I hope to accomplish the following in order to help guide you to a better understanding of the market and where you stand in that market! Do you qualify for the many down payment assistance programs available in our area? Do you know that based on the current rental rates in Brevard County that home ownership can sometimes cost less per month than renting? Did you know that Home prices have bottomed out and are now on the rise? Did you know New Home sales are up for the first time in over 5 years? An Overview of the three most common homebuyer assistance programs Across the markets, between 60 to 80% of homes may qualify for one or more programs. The first and most obvious one is the down payment assistance program. They are general soft second or third mortgages or grants, providing benefits such as 0% interest rates and deferred payments. The assistance amounts may vary in range from a few to tens of thousands of dollars and can be used towards closing cost assistance, prepaids, and/or principal reductions.

3 Most homebuyer assistance programs are government-funded and provided through municipal or quasi-government agencies on non-profits. Some are sponsored by employers and you may also find some down payment assistance programs that offer additional funds for rehab work on the home. Next, there are affordable, below market first mortgages. Many larger housing finance agencies, particularly at the state level, offer first mortgages to accompany their down payment assistance program(s). These first mortgages typically offer below market rates, and may even have reduced closing costs or reduced fees. They are often funded by state housing finance agencies and may subsidize portions of the interest to offer effective rates below what the normal market can provide, helping to lower buying costs and monthly payments. Other options include Tax credit or Mortgage Credit Certificate (MCC). A tax credit is designed to help first-time home buyers * offset a portion of their mortgage interest on a new mortgage as a way to help qualify for a loan. Because it is a tax credit and not a tax deduction, mortgage lenders will often use the estimated amount of the credit on a monthly basis as additional income to help you qualify for the loan. Another Option is negotiating a down payment assistance from the seller(s) of the property, some government loans such as Fannie Mae and Freddie Mac, FHA and V.A. allow the seller to contribute a certain percentage based on the purchase price towards the buyer(s) down payment and closing costs. A few important things to note about homebuyer assistance programs: Assistance programs are for Homebuyers, not investors. Most housing agencies will require that the home be used as a primary residence in order to qualify. Most programs require little money down from the homebuyer (but typically not a large sum). There are often additional benefits, or even entirely separate programs, for educators, protectors, health care workers, veterans of the armed forces, and households with disabled members. FHA Loans and down payment assistance can they work together! The federal housing administration (FHA) which is part of (HUD) insures the first mortgage, so a lender can offer you a better deal. When using a FHA loan the required down payment for a purchase transaction is currently 3.5% of the purchase price. In some purchases 3.5% can be almost the same as the First, Last and Security Deposit you are already use to dealing with when you move.

4 Useful sites to visit H.U.D. Mortage Calculator Get started with getting answers to your questions! If you would like to learn more about the potential of purchasing a home and what size loan you qualify for please call or me for a one on one meeting in your home or my office no obligation. Ronald Egoroff Direct line: days a week! Or me at RON425@aol.com (*Definition of a first time home buyer, Is a buyer that has not purchased a home within the past 3 years)

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