YOU CAN BUY A HOME WITH JUST $1000!
As long as you qualify based on income and credit standards, the home appraises and the title is clear, Continental Home Loans, Inc. has structured a mortgage program to make the seemingly impossible possible.
By working with the top real estate professionals on Long Island and in the boroughs, we have been able to explain to many home sellers how to better position their homes for sale- by eliminating the biggest obstacle to people buying their first home- sufficient funds for the down payment, closing costs, establishing escrows, and reserves.
We have carefully designed a loan program that fits within the guidelines of the Federal Housing Authority which means this product is insured by the Federal Government. Each home will have an individually crafted combination of sales concessions and grants through HUD- Approved Not-for-Profits that will cover all the cash requirements for the home buyer (except their attorney, and if the buyer chooses- a termite and/or home inspection).
Because the loan is an FHA insured loans there are loan limits that restrict the amount of money that can be lent, making only certain homes eligible.
How the Program Works for a Buyer
We will be hosting regular seminars (see the events button on the left side of the web page to see dates, times and locations) to explain the “nuts-and-bolts” and accepting applications to establish eligibility. This is a fully documented loan product in terms of credit, assets and income. We are looking for good (not perfect) borrowers. Continental has long believed in granting loans to people for whom the loan is suitable (meaning they can afford it).
Prospects are urged to bring copies of their pay stubs, W2s, and most recent bank statements to the seminars. They will fill out a Quick Application for a mortgage and an authorization for Continental Home Loans to run their credit report. Within 48 hours a Continental Mortgage Planner will contact the prospect by phone to go over their submission and put together a more complete picture before submitting the application to an underwriter.
Approved borrowers will be e-mailed a “Good As Gold” Certificate which will give them the power to enter into contract with any home available in the program up to the limit displayed on their certificate.
The available homes will be shown here on this website (see the All Listings button on the left side of the web page). Monthly, we will host an Open House Day where the house will be available for a walk-through for only two hours. Times of the Open House are part of each listing. The most up-to-date inventory of homes will also be distributed at each of the public seminars.
In so far as the seller has already agreed to the numbers (the sales price, the costs they will pay on behalf of the buyer and the gift to the Not-for-Profit), there is no negotiating of a deal. It is what it is.
Contract signing, appraisals and title work should be quick. The mortgage paperwork will be completed expeditiously and closings could be within three weeks.
Homeownership for $1000 cash and a new mortgage insured by the Federal Government!
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How the Program Works for a Seller
In the current real estate market where only about 5% of the inventory is actually selling each month, the largest challenge to selling a home is finding a way to differentiate the home. Creative financing options have long been a way to make a home more attractive. Whether in the form of sales concessions for closing costs or seller-paid buydowns of the mortgage interest rates, sellers have been forfeiting a portion of their proceeds to make their home (and its financing options) better than the homes they are competing against.
In this program, we will be using the sellers’ proceeds to cover the vast majority of cash needs for the buyer. The seller, through a combination of a sales concession and a gift to an FHA approved Not-for-Profit, will fund the buyers’ down payment, closing costs and prepaids (prepaid mortgage interest, the first year’s homeowners’ insurance premium, and tax and insurance escrows).
Historically, it has not been unusual, in the First Time Home Buyer Market, for sellers to pay much of the closing costs for their buyers. Living in New York is expensive and saving sufficient monies to buy a home is the biggest hurdle for the first time home buyers. These sales concessions have provided opportunity that otherwise would lessen the number of buyers. By increasing the capacity of the sellers’ ability to give to the buyer, we are increasing the buyer pool. More potential buyers are a very good thing for sellers.
In lieu of further reducing the price of the home to create market differentiation, sellers’ can use available financing options to make their homes more desirable than other available homes.
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