Down Payment Assistance

Down Payment assistance program can benefit both sellers and buyers.

Advantage to the sellers:

It helps sellers to attract more potential buyers and sell their homes faster. The average time to sell a residential property in today’s market is approximately 6-8 month. By using this program sellers will be able to attract more buyers just because more buyers will be able to get financing.

Advantage to the buyers:

It helps to qualify for the mortgage to those buyers who don't have enough money for the down payment and closing cost. Also, it helps buyers to get better terms on the mortgage and substantially lower monthly payment.

Example:

$200,000 – Market Value

$175,000 – Seller needs to net from the sale of the property

$25,000 – Amount of equity to work with.

Buyer is approved for $180,000 loan amount form ABC Mortgage Company. Buyer needs $20,000 for down payment and $5,000 for closing cost.

Down Payment Assistance Company will wire a private contribution of $25,000 to the buyer checking account before closing for down payment and closing cost. Down Payment Assistance Company's fee is 10% of the contribution or $1,000, whichever is greater. In this case, the fee is $2,500 because it's based on a $25,000 contribution.

Down Payment Assistance Company gets paid back through the settlement statement as a payoff to their collections account for the full amount of our fee ($28,000). Down Payment Assistance Company is not a mortgage or a loan company; there is neither shady side deal, nor any silent second. There are no amortizations tables or terms to use the program; it's just a service with a fee. The seller does not net the $28,000, therefore there is no capital gain on that money, and no 1099 are issued. This is a completely legal and legitimate transaction, where everything is disclosed. Parties are totally independent in the transaction, which are HUD and RESPA compliant. It’s a truly win-win for everyone!

Most properties in our inventory are eligible for this program. Please visit http://molotinc.com/Inventory/Inventory.html to check our inventory.