New FHA Program is Sure to Help Sell More Homes!

This is a bit long - but important info none the less!

- Down Payment Assistance was a great program and helped many families realize the dream of home-ownership. Now that Down Payment Assistance is no longer available, what options do buyers have?

It is a well known fact that many people simply cannot qualify for financing due to the lack of a down payment and are concerned about cash reserves after their home is purchased. Often times, down payment gifts are poh poh'ed because the borrower is concerned about repaying the loan after adding the additional expense of owning a home.

Move over DPA . . . There is a new game in town - This new program is referred to as the Punctual Payment Program and is administered by the Rainy Day Foundation. Actually the program has been in existence for quite some time and is getting renewed attention due to the lack of DPA programs. The program does not replace seller funded down payment assistance.

The program is funded by a seller concession similar to the old DPA program. When the buyer makes on-time monthly mortgage payments, the Program will reimburse them for each payment made up to a maximum of 6% of the sales price of their home.

Punctual Payment is NOT Down Payment Assistance:

Borrowers will still need to provide a 3% down payment (3.5% effective 1/1/09) through either their own funds or an acceptable gift source. The Program will simply reimburse the borrower on a monthly basis for making the mortgage payment on-time, thus allowing the availability of money to quickly replenish their savings, repay a 401K loan or a relative from which they had borrowed the down payment.

This Program provides a great marketing opportunity - rather than reduce the sales price of the property . . . offer the Punctual Payment Program.

Realtor/Seller/Builder Benefits:

• Increase Home Sales
• Unique builder marketing opportunity in all channels (Radio, TV, on-site, etc.)
• Identified leader in the industry providing actionable community assistance
• Promotes favorable attention to brand
• Improves customer satisfaction scores
• Social Marketing builds on corporate goodwill and assistance

Buyers will be motivated knowing that their payments will be reimbursed as they settle into their new home.

Benefits to Homeowners:

• Motivates home-buyers to purchase
• Reimbursement of mortgage payments builds homeowners cash reserves
• Protects homeowners by paying their mortgage in case of loss of employment
• Protects homeowners from any type of unforeseen financial difficulty

Below is a snapshot of the Program Process Time-line:

The Punctual Payment Program is Available NOW is all 50 States, however not all lenders are offering the Program. I would imagine as we move forward, more will provide this program as part of their FHA offerings.

If you would like more information on this awesome program, please email gtanvas@patriotms.com - We have several Lenders that are actively participating in this FHA program.