Atlanta, GA, August 19, 2009 --(PR.com
)-- Finance the Dream is pleased to announce a Down Payment Assistance Program on their Lease Option and Rent to Own homes. This program, which is aims to help people with damaged credit get into a home with limited cash down, will be available nationwide.
“This program was developed due to the state of the economy. With the scarcity of credit and money, we found that people were searching for creative options to obtain their dream of homeownership,” says Vincent Polisi, president of financethedream.com.
“Our No Credit Qualifying Lease Option Program has been extremely successful for both buyers and sellers,” says Polisi. “However, as compared to a year ago, we are finding that people are having more difficulty in coming up with their down payment.”
Finance the Dream’s Down Payment Assistance program utilizes a contract structure that legally enables prospective buyers to tap into and utilize the First Time Home Buyer Tax Credit of up to $8,000 for their requisite down payment. Although it can take up to eight weeks for the funds to come in, the buyers are able to move in to their dream home immediately.
“We are surprised to find that our program has been successful with people who have good credit, but just do not have the funds to make the full down payment required for a mortgage without receiving the tax credit funds,” says Polisi.
Presently, utilizing conventional mortgage financing programs, buyers face the chicken or the egg conundrum. They need the First Time Home Buyer Tax Credit of up to $8,000 for their down payment, but cannot get it until after they purchase a home.
Under current HUD guidelines, the First Time Home Buyer Tax Credit can be sold to a third party prior to a conventional mortgage closing but it can not be used for the requisite down payment of 3.5%. It can only be used for “additional” down payment (over and above the 3.5% minimum requirement) as well as closing costs and pre-paid items. So, buyers are faced with a carrot on a pole that is not within their grasp.
“What our program does, “says Wendy Polisi, Vice President of financethedream.com “is allow buyers to qualify for the tax credit and move into their dream home now under an owner finance contract that qualifies as a sale under the IRS guidelines. Then, in a year or two when they are ready to get a mortgage, this money will be applied towards their down payment.”
By offering creative alternatives, financethedream.com hopes to be able to be able to help more American’s achieve the dream of homeownership.