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					PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595




       No money down when you buy a home
No down payment mortgage programs are sought by first time
home buyers, of persons who want to use their cash for other
things such as furniture (if you have enough cash for a down
payment – use it to furnish your new home instead), or persons
buying a second home.
Some ways to buy with no money down – Here is a list of some.
     There are a few zero down programs now available from
     lenders. Some specifically for first time buyers. These are
     Government programs like HUD, FHA, and VA, and Private
     programs like Nehemiah.
     Borrow money for the down payment from family or friends.
     Offer the seller a little more than the selling price if they will
     accept the down payment in the form of a note. The seller
     gets a little higher price for the additional risk.
     Borrow against a life insurance policy. Some life insurance
     allows borrowing for the purpose of purchasing real estate.
     Borrow against other property as collateral for down payment.
     Pledge securities along with the home to secure the
     mortgage.
      Home equity loan where you have adequate equity in
     property you already own, can generate some cash for down
     payment.
     Lease now with option to buy later on. Provide for part of the
     rental payment to be credited towards the down payment
     when you do buy.

                                              -1-
PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



        No money down when you buy a home - continued
Flexible mortgages at little or no money down – With the
Flexible 100 mortgage, you borrow 100 percent of the home price
and can even borrow needed closing cost except for $500 of your
own money toward closing costs. With a Flexible 97 mortgage, you
can borrow 97 percent of the home’s price, with you paying 3
percent toward the down payment. Also, this amount can come
from sources such as gifts, grants, loans from relatives or nonprofit
groups, and from employer-assisted programs.

You can select from a fixed-rate mortgage with a term of 15, 30, or
40 years, or a 30-year adjustable rate mortgage (ARM). With an
ARM, the rate stays fixed for the first 5, 7, or 10 years (you decide),
and after that, the interest rate changes annually.

You can apply for a Flexible 100 or Flexible 97 mortgage to buy or
refinance a single unit home that you will live in as your primary
residence. These Fannie Mae Flexible 100 and Flexible 97
mortgages are available from lenders throughout the U.S. and are
not restricted based on how much money you earn.

To learn more, ask your mortgage agent or check Fannie Mae at


                                     Flexible 100 and Flexible 97 mortgages
                                     at Fannie Mae




                                               -2-
PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



          No money down when you buy a home                              - continued

Another flexible mortgage is the Home Possible mortgage which
features zero and three percent down payments and flexible credit
requirements to help low-and moderate-income borrowers qualify
for a conforming conventional mortgage for a single family property
with as little as $500 of the down payment or closing costs coming
from their own funds. These and other mortgage products are
offered by numerous lenders across the country.

To learn more, ask your mortgage agent or check Freddie Mac at



                                             Home Possible mortgage
                                   at FREDDIE MAC



Down Payment Assisted (DPA) mortgages - at little or no money
down. These are programs wherein someone gives a charitable
gift of the down payment to the buyer. There are two types,
Federal and Local and Native American government housing
departments and private charity organizations.




                                               -3-
PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



          No money down when you buy a home                              - continued



Federal (DPA) programs –

The federal government has one called the American Dream Down
payment Initiative for lower income and minority households. ADDI
will provide down payment, closing costs, and rehabilitation
assistance to eligible individuals, for up to the greater of $10,000 or
six percent of the purchase price of the home.




                                    The American Dream down payment Initiative
                                      at HUD ADDI



Private (DPA) programs –

Then there are several private initiatives such as Nehemiah (the
first company to pioneer this), Partners in Charity, American Family
Funds, and Ameridream. These are programs to allow persons to
use the HUD Flexible 97 mortgage by adding the cost of the 3
percent down payment to the selling price and making a mortgage
for this full amount. Hundreds of thousands of homes have been
mortgaged under these programs.




                                                -4-
PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



        No money down when you buy a home - continued
The IRS may be forcing these types of programs to change or stop
operations. Some feel these companies abuse the Charitable Gifts
Rules. According to a recent Revenue Ruling that went into effect
on May 22, 2006, Seller-funded DPA’s are not considered
charitable organizations under the meaning of IRC 501(c)(3) of the
US tax code. Organizations like AmeriDream and Nehemiah are
opposing the IRS on this issue. There are those who feel they
have no chance of overturning the ruling. Then in May 2007 HUD
issued a rule that is under review and which one HUD official
admitted was flawed and needs work. The HUD Rule FR-5087
would eliminate Non-Profit DPA that gives the down payment as a
gift.
      Seller-funded DPA was founded by Assistant Pastor, Don Harris, at Antioch
      Baptist Church in Sacramento CA. Mr. Harris had also been a civil rights
      activist and attorney. While searching for a way to help his congregation he
      discovered a loop hole that allowed home sellers to indirectly fund a
      borrower’s down payment. A home seller is prohibited from directly
      providing the borrower funds for a down payment. Mr. Harris discovered that
      he could use a non-profit as a conduit between the home seller and home
      buyer. From this discovery, the Nehemiah Program was founded.
      Soon after starting Nehemiah, trouble with HUD and IRS began, and has
      never stopped. Researchers have determined these programs have a 20
      percent default rate. This causes HUD to be critical of these private DPA
      programs. Chris who is a champion and follower of Habitat for Humanity
      points out that recipients of these Sweat Equity homes go bankrupt at a rate
      of around twenty percent soon after moving in. (Memphis Tenn. region is
      highest of the Habitat 170 regions with a bankruptcy rate of 40 percent).




                                               -5-
PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



        No money down when you buy a home - continued
Some consumer action groups are very opposed to private DPA
programs. The Real Estate and Mortgage industries are divided
on which side to support in this issue. So are various members of
state and federal congresses and other elected officials.
These programs give you 2% to 10% down payment on your home
purchase, depending on your needs.           PIC is a non-profit
organization dedicated to helping you become a homeowner. The
mission is to gift down payments to qualified buyers and help the
community as a result. PIC provides a down payment with no
repayment and no second mortgage or lien of any type.




                                                 2% to 10% down payment
                              It is a true gift to you! At PIC


On April 23rd 2007 the IRS made its first posting of non-profit organizations that continue to
do down payment assistance programs. If the IRS wins the court battle on this, it would likely
shut down these companies, because they would not be tax exempt. If the IRS does not shut
them down, the new possible HUD regulation FR-5087 would then likely shut them down for
gifting the down payment money to buyers.




                                               -6-
PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



          No money down when you buy a home                              - continued


Native American Government (DPA) programs –



                            Their WEB SITE at PIN

In January 2007 Tribal Council voted to partner with Penobscot
Indian Nation Enterprises (PINE), the tribe’s federally chartered
economic and business development corporation, to create a
national home mortgage down payment assistance company
(PINFHA) for qualified buyers. The tribe’s governmental status
created the opportunity without tribal cash or assets as collateral.
The managing partner in the deal is Global Direct Sales from
Gaithersburg, Maryland who is a leader and pioneer for this home
mortgage industry product.

Creation of Penobscot Indian Nation Global Direct Sales. This is
another program that may side step the IRS that has come on the
scene recently. This is by a Native American nation which is
exempt from IRS jurisdiction. The program below is a partnership
between Penobscot Indian Nation and Global Direct Sales.




                                               -7-
PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595




          No money down when you buy a home                              - continued




                                                        a Penobscot Indian Nation of Maine
 government grant program that provides low to moderate-income homebuyers with a down
 payment grant to be used towards the purchase of a home. They have a Southwest Florida
                representative. At PROGRAM or PENOBSCOT FHA




This new program by Global Direct Sales of Gaithersburg Md. is called DpFunder, an Earned
Income Program (EIP), which allows home buyers to earn income which may be used
towards a down payment and closing costs on a home. Fannie Mae, Freddie Mac, and HUD
all permit these uses of earned income. So this not only removes the threat of HUD
interference, but opens the market up to the much broader Fannie and Freddie.

Where does the earned income come from. The buyer is hired as an independent contractor
by the Global Direct Sales. This buyer acting as a sales person, sells to the home seller,
membership shares in a sellers club. The price of the shares ranges from 3 to 10 percent of
the sales price of the home.

The buyer must report this as IRS 1099 income and be taxed on it. But the buyer has a no
down payment home and the seller has a buyer.




                                               -8-
PREMIERE PLUS REALTY, BROKERS                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



        No money down when you buy a home - continued
Look at other ‘no or low’ down payment programs - You can
look into foreclosure property but these are for investors unless
you are really a do it yourself person. There is generally no
information about the condition of the inside of the home and
entering the home is not always possible.




                                                        Zero money down bank foreclosures

                                                 At ALL HUD

The government Federal Information Center in Pueblo gives away
a booklet that gives a good overlook at ‘low or no’ down payment
home buying.




                                           How to buy with low down payment

                               At     FEDERAL INFORMATION




                                                -9-
PREMIERE PLUS REALTY, BROKERS                    CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



          No money down when you buy a home                              - continued


Veterans and active duty military personnel can get loans through
Department Of Veterans Affairs (VA). Home buyers who qualify
under the VA guidelines can obtain a mortgage with no money
down.




                                         At Home Loan Guaranty Services



Florida ‘no or low’ down payment programs – Florida Housing's
mission is to help Floridians obtain safe, decent housing that might otherwise be unavailable
to them. Florida Housing offers two down payment and closing cost assistance programs in
the form of second mortgage loans and one in the form of an up front cash assistance to help
eligible homebuyers cover their down payment and closing costs.




                                                 Making homes available
                                 At     FLORIDA HOUSING




                                                -10-
PREMIERE PLUS REALTY, BROKERS                                  CHRISTOPHER LADD HARKER LLC, AGENT
Office free 866-738-5517 pay 239-455-1977 free fax 941-375-3658 Deane & Chris at Home 239-455-1595



          No money down when you buy a home                                                   - continued

      Florida Assist Loans are zero percent interest, non-amortizing second mortgage loans,
      which means you do not make any monthly payments. You repay the loan if you sell the
      home, transfer ownership, satisfy or refinance the first mortgage, or cease to occupy the
      home. The Florida Assist Loan provides up to $10,000 to assist with down payment and closing costs. This program targets
      applicants whose incomes are at or below 80 percent of the Area Median Income (AMI)*.
      The Homeownership Assistance for Moderate Income (HAMI) Loan program enables borrowers with
      moderate incomes to also qualify for down payment and closing cost assistance. HAMI Loans
      provide up to $5,000 to assist with down payment and closing costs. HAMI is an amortized loan that
      is offered at 5 percent (5%).You may qualify for this loan if your income exceeds the limits for
      the Florida Assist Loan, but does not exceed the Maximum Annual Income Limits for the First Time
      Homebuyer Program*.




Private securities-pledge down payment programs - Some
security firms have a program that works like this. The home buyer
pledges securities valued at about 35% of the price of the home.
The lender provides 100% of the price of the home, holding the
securities and the home as collateral. The home buyer makes the
decisions about how the securities are invested and the lender
gets fees for trades made.


                               Combined with Merrill Lynch mortgage, Mortgage 100® offers
100% financing with no down payment and no private mortgage insurance, by pledging a
securities account held at Merrill Lynch. At MORTGAGE 100




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