realestatemarketingthisweek.com – $8,000 tax credit for first time home buyers with low down payment – Part 3 – We have back in the studio today Mr. Dan Havey.

Dan and I have worked together in the mortgage industry for about 14 years and we are happy to have him back. He has seen a lot of changes in the market and thanks again for being here.

Michael, here is a question I wanted to ask you, there is so much misconception in the marketplace today as far as what is still available for financing. I think a lot of people have this idea that it is impossible to finance a loan or get a mortgage or that you have to be able to put 20% down or have a 720 FICO score.

Can you let people know whats really going on out there? Well you know a lot of things have gone away. There are a lot of those old loan programs that were fancy ways to sell money and finance real property and a lot of thats gone.

The reality of it is, if a person has a minimal amount of money down, there is absolutely financing through the Federal Housing Administration with 3.5% down. You can buy up to about 8000 with only 3.5% down.

Now with Fannie Mae and Freddie Mac, we actually do have a few investors that will allow us to only put 5% down with those and that loan amount maximum is 7000. So there is still plenty of financing for primary residences.

www.melbourne-loans.com - The first home buyers grant victoria paperwork is complex. Let us help you with this hassle and we will find the best mortgage deal for you.

First Time Home Buyer Tax Credit Assistance and Federal Government Home Loan Program with Low Down Payment on FHA Mortgages. Buy Bank Foreclosed Homes at a Discount. Go To RealEstateMarketingThisWeek.com Part 2 (Excerpt) The median income family can afford twice the median priced home; prices drop over 50% And now I mentioned Dan Havey is back in the studio with us, Dan has done a lot of great things in the mortgage industry. He left us about a year and a half ago, is that right Dan? Yes, I left the mortgage industry in October of 2007. Tell us a little bit more about yourself. As you know I came originally from Wisconsin, where I got a degree in Business Finance and I came out here in 1989 and started working with my brother selling real estate owned-REO, bank owned properties for Fannie Mae, Countrywide, and the Resolution Trust Corporation-RTC which was the government entity that was put in charge of disposing of all the real estate owned by the 1800 S&Ls that had failed. I did that until about 1995 when I moved into the mortgage industry and there for 12 years I worked predominately with bankruptcy attorneys helping their clients get out of bankruptcy and foreclosure. I left the mortgage industry in October of 2007. Now I am working predominately in the arena of marketing for real estate and mortgage companies, helping out companies, just like Im here helping out Michael today, to get people to realize that right now actually is a really good time to buy.

Government grants for buying a home are issued to people who belong to the low income group. Read on to learn about the grants.

Owning a house is a dream of most people because it gives a sense of security. The dream of owning a house have become a reality by an act issued by the US government known as the American Dream Down Payment Act.

According to this act, the US government will keep aside $200 million to sanction home buying grants for the low-income group. This will relieve the low-income group people of the burden of a huge down payment that they would have to make as a part of a home loan.

American Dream Down Payment Act

The American Dream Down Payment Act was signed on December 16, 2003 by President George W. Bush. This new program is a joint venture of the American government and the banks to provide grants to the home buyers of the low-income group. According to this Act, a grant would be issued to an individual to meet the down payment and closing expenses of a home loan.

To be eligible for this grant, you should be a first-time home buyer and your annual income should not exceed 80% of the area median income.

As per this act, the maximum amount granted will be six percent of the purchase value of the house or $10,000. The grant amount can be used as the down payment and to meet all the transaction expenses associated with home buying.

This grant program would be handled and overseen by the US Department of Housing and Urban Development (HUD). The aim of this Act is to encourage people belonging to low income group to invest in a home.

A professional appointed by HUD would assist the home buyer in the purchase of the house. Even if you have a bad credit history or an inadequate credit score, you are eligible for this loan if you are a first-time home buyer. The home buying grant is also called “free money” because you do not have to pay any interest and monthly installment on this amount.

Down Payment Gift Assistance Program

There are many who dream of buying a house but are not able to do so because of lack of funds to put down as a down payment and also to meet the closing expenses of the house deal. This problem can be resolved by applying for a down payment gift assistance program.

In this type of grant, the seller does not give the down payment funds to the buyer. The home seller will help the buyer in paying the closing costs of the house deal. This amount depends largely on the type of loan issued to the buyer.

If a seller wants to provide gift assistance, he has to enroll his house in a concerned government program. At the time of closing the deal, he contributes the stipulated amount to the buyer as the closing and transaction fees.

This deal is negotiated by a financial organization which is associated with HUD. The buyer should always approach a bank or a financial institution that is listed with HUD to avail the grant.

When the deal is closed, the funds for the down payment are transferred to the account of the concerned financial organization. You need to understand, the seller has no part in the transfer of funds from the Gift Assistance Program to the bank.

Anyone who belongs to a low-income group is eligible for this program. However, he should qualify for a home loan that allows gift assistance.

If the buyer has not used the entire fund, it is returned to the gift assistance program. The gift assistance grant cannot be used to refinance a home or to make home improvements.

Before you apply for the grants, ensure that the grants are supported by HUD.