|
Q: |
Why
would a Seller want to use HOME Grant to help sell their home? |
|
A: |
The
HOME
Grant program helps the Seller by offering funds for a down payment
that a potential Buyer wouldn't have without the program. Typically, if a
property is on the market for an extended period of time, the Seller has a
tendency to drop the price of the home to make it look more attractive to
potential buyers. By using the
HOME Grant
program, the Seller can stay much closer to the original asking price of
the home, while providing valuable help for the Buyer. It also maintains
property values. |
 |
|
|
Q: |
Does
the Seller of the property need to sign any special addendums or
agreements? |
|
A: |
Yes, the Seller
signs the
HOME Grant Seller Letter.
This document states the Seller agrees to contribute money from the
proceeds of the sale of their home to
HOME Grant. |
|
|
|
|
Q: |
Is the
Seller donation a sales concession? |
|
A: |
Neither
FHA nor conventional lending institutions consider this a sales
concession. |
|
|
|
|
Q: |
Does
this program mean the price of the home is raised to cover the funds? |
|
A: |
No. The
full fair market value of the home being purchased is verified by an
independent appraiser. This amount is used to calculate grant amounts.
The appraiser must determine the value of the home based on sales of
comparable properties in the area. |
|
|
|
|
Q: |
How
much money does a Seller contribute to HOME? |
|
A: |
This
varies from property to property and is based on the Contribution
Worksheet.
The amount is usually the difference between the full fair market value
and the seller's net price. The Seller makes the contribution ONLY if the
home is sold.
If there is no sale, there is no fee |
