Financing Options

There are several financing options available to home buyers. If you have good credit, a desire to purchase a new home and can pay 1 % of closing costs (this is usually 1 year of prepaid insurance and 3 months of taxes) up to $750.00(?) this program will work for you. It is designed with the credit rich and cash poor person who wants home ownership.

Ameridream/Niehmiah/Hope Programs:

FHA usually requires 3 percent down. These are  gift programs with a charge of 3/4% to 1% to help you get into your home.

Example: 100,000 sale price of home   Ameridream gift: 3 3/4 %   

Your are financing 103 3/4% for your new home. If you include closing cost, the financing may be 107.5 % depending on lender charges.

Total purchase price: 107,500

With this kind of financing we have to watch not to go over fair market value as an appraisar will not appraise a property higher just because a buyer is going in with no money down. A buyer will generally ask the seller to assist in closing costs to keep the mortgage amout low. In a tough market this financing is easier to work with than a hot market with homes sell quickly.

Ameridream will also work with conventional loans with the same financing principals in mind.

Conventional Loans

If your credit is good you can also do a double loan for the 100 % financing of a purchase property. It is called an 80/20 loan and helps knock of the PMI required by most lenders.

Total Price:  $100,000

First Loan      $80,000

Second Loan  $20,000

Be aware that you will be paying more in closing costs as you are acquiring 2 loans for 1 property. If you roll in closing costs that will increase your loan amount also.

Goverment Grants

These have guidelines for qualifying for these loans. They usually deal with a buyers income and not the size of the family. There are grants and goverment loans that become available at reduced interest for families that quailify but they run out of money quickly.

The information provided here are examples in this area. It is suggested you call your lender for more exact information on dollar amounts and financing information.