For Sale By Owner

People who make a search in MLS listings, FSBO category and flat-fee brokerage for buying a home for the first time have encouraging news.  They can avail Assistance Programs by the government and non-profit organizations.  The help is extended with a view to lessen the burden of down-payment on mortgage loans.

The mortgage industry funding the U.S. real estate business has undergone changes.  The severe blow caused by the mortgage crisis and credit crunch in the last couple of years has made them so.  Home buyers for the first time should do well to know this. They may be interested in buying a property selected from MLS listings; FSBO category or flat-fee brokerage listings.  They may qualify for a home mortgage loan based on their resources also.

But the down payment they are required to make may be prohibitive. To circumvent this shortage, the home sellers who advertise their properties in MLS listings, FSBO category or flat-fee brokerages have a way out.  For completing the sale quickly, they enroll themselves with these Assistance Programs.  On a fee being charged, the lending institutions come to help in making the sale closed after the buyer and seller finalize the price.  Lawfully the home sellers are prohibited to get involved in such activities with the buyers. But the lending institutions evaluate the entire documents and if found viable can make payment of loans in the form of agreed sale price to the real estate agent involved in the deal.

The Federal Housing Authority is a part of the Government machinery – The Housing and Urban Development Department (HUD) doing this service mainly for home buyers. FHA extends insurance of the HUD properties, not generally exceeding a value of $250,000/- and the buyer’s as well as the interests of lender’s are protected at the same time.  In case of default of the home loan by the borrower, HUD takes up the responsibility of repayment to the lenders on FHA insured properties. It is therefore safe for first-time home buyers to use this authentic Assistance Program.

There are also non-profit organizations doing the same service, but one should be vary of the functioning. The HGPA – Home Gift Providers Association is overseeing the activities of such organizations, with a view to ensure there are no malpractices. The ethical and fair practices of such Assistance Programs are watched to help home buyers avoiding any legal wrangles later on.  As far as possible the home buyers who wish to buy their homes through MLS lists, FSBO category and flat-fee brokerage arrangements should always be cautious.