$18,000 first time buyer incentive - FOR REAL!

Jul 10th 2009

Posted By: Marshall Walker @ 12:12pm In: Mortgage

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Atlantic Bank & Trust has received approval for $7 million in Grant money to use in conjunction with FHA loans. The Grant will act as a second lien that is forgivable if the borrower retains ownership of their home for 5 years or more. The borrower will not have to make any payments on the money the Grant provides. The Grant money can be applied toward down payment, closing cost, and prepaids.

This is a 5 to 1 MATCH. IE. If the borrower puts down $1,000 they will receive $5,000. If they put down $2,000 they will receive $10,000. $10,000 is the max Grant allowed. Here are some highlights:

1. First Time Home buyers only. This includes anyone that has not owned a home in the last 3 years. FTHB can also receive $8000 first time home buyer tax credit too (potentially $18,000 in free money!)

2. Borrower has to attend a mandatory 1.5 hour class on Home buying. This will be initiated by the Bank and within 5 days of receipt of application. This class will be over the Phone with a Counselor. The cost of the class is $150 which will be covered as part of the Matching Grant. No out of pocket expense to the borrower.

3. Borrower must have $500 into the Transaction. This can be a gift from a family member.

4. Income must be at 80% or below the Median income for the area. Any person who resides in the home and is 18 years or older and is working even part time will be used in the calculation.

5. Owner Occupied only.

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