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     | Saturday, March 24, 2001 - 10:18 am  http://www.ameridream.org/ I haven't checked it out, does anyone have experiences with this program?
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| | Sunday, March 25, 2001 - 06:13 am This sound like "partners in charity". I looked into this myself while seraching for mortgages. The only thing that concerns me is that the buyer must contribute to the fund in order for you to receive the gift. I spoke with someone form Partners in Charity and was told there was no income limitations, you can qualify for this as along as your mortgage loan accepts gifts and you must find a buyer willing to join the program. I guess if the seller really wants to sell and this would ensure that the buyer would have the funds than it sounds like a okay deal, however I was a little hesistant just the same. I have seen alot of sellers that are willing to pay for part of the closing and may just want to go that route. But I have no idea if going through this type of program would offer them a tax break??
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| | Sunday, March 25, 2001 - 10:46 am Most likely it wouldn't be a tax break for the seller unless it's investment property. With the $125K tax free gain from the sale of a residence, few properties in the first time buyer price range would result in a taxable gain for the seller. Paying closing costs helps properties sell, especially in a buyers' market. Also, if the property isn't overpriced to begin with, it should still appraise if they add part or all of those gift funds to the sales price.
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| | Monday, March 26, 2001 - 03:43 pm I use both of these program quite a bit. Both are good programs but I favore Partners in Charity as they also make a donation to any charity you direct them to. Here's the basics: Seller must agree to pay 3.75% of the sales price to either PIC, Ameridream or the others. PIC will then make a "gift" to the buyer for 3% of the purchase price. What is baiscally created is 100% financing for the borrower. There are mostly doen with FHA loans as they allow the gift. Property must appraise. What typically happens is the buyer pays full list price in order to encourage the seller to make the deal work. Remeber, most of these buyers are terms buyers, meaning they do not have a downpayment nor good enough credit to go through FNMA 100% programs. They are good programs that get people into homes. It woudl be better if FHA woudl just allow 100% in stead of this mickey mouse stuff.
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