Expert: Lisa Webber - 4/3/2008

Question
QUESTION: I am looking to purchase my first home.  I would prefer a single family but realistically am considering all options, (i.e., condo, townhome, rowhouse, etc.) I am hoping to be eligible for some type of assistance, (as much as possible), with down payment and closing and any other costs.  I am single, no dependents and income close to 60K.  I would also like to get preapproved.  Will the mortgage company give insight to the closing/down payment assistance or will I need to find this on my own.  Thanks.

ANSWER: Yes, the mortgage lender will help you with choosing a loan program and your options.  FHA is a government insured type of mortgage loan that is getting very popular.  One of the great things about FHA is you can get into a home with only about 3% down.  Ask your lender about a program called Ameridream.  We just closed last week on a loan with buyer who used the Ameridream program with FHA.  Basically what happened was they put an offer in to purchase a home and asked the seller to contribute 6% in closing assistance.  You only need about 3%, but you also need 3% for a downpayment with FHA.  Using Ameridream, the seller was able to contribute 3% of the downpayment as well, with the buyers essentially getting in with no downpayment.  You'll still need your earnest money deposit when you write your offer with your buyers agent.  This is typically $1000-$2000 in a first time buyer price-range although you can put down more.  The earnest money comes back to you as part of the costs involved and if there is money left at settlement of your earnest money that isn't used, you'll get a check back.  If you are in Maryland, I work with a couple really good lenders and can give you their numbers.  It's important that you work with a good lender so that they get you to settlement on time.  Choosing a good Realtor and good lender are so important - a lender that is not diligent in follow up and making sure the loan is done in a timely manner can be a big problem.  Let me know if you have any other questions.  Good luck to you!

---------- FOLLOW-UP ----------

QUESTION: I'm glad to see you mentioned Ameridream.  I actually completed the homebuyer education course on their website.  I found them in a "first time homebuyer" search.  I wasn't sure how legit they were but did the course anyway.  The contact info for Maryland lenders would be great.  I want to work with someone that will indeed be diligent but also in tune with what I want.  In light of the economy I want as much home as I can get but am realistic about what I can really afford.  I don't want someone trying to push me into something that will become a burden, no less a foreclosure.  Thanks for the info.

Answer
Yes, Ameridream is legit - worked great for these buyers!  They purchased a home for $339,900 with no money down, the sellers contributed 6%.  We work with a couple lenders.  One is Capital Mortgage over in Annapolis.  The VP there is Tim Rooney and his number is 301-858-0200.  I like working with Tim because he is a broker and what he does is shops around to see where he can get you the best deal depending upon your situation.  If Countrywide has the best rate, he'll put your loan through Countrywide.  It could be Washington Mutual, Suntrust, etc.,  whichever one is going to give you he best rate.  If you'd like another referral for a lender, e-mail me at webberteam@aol.com and I can provide information for others as well that we've had very successful transactions with.  Definitely don't let anyone lead you into anything that is going to stretch you too far.  You want a 30 year fixed rate, nothing fancy and want to be fully qualified, then you will know for sure what your payment will be every month.  You will probably be approved for more than you can comfortably afford, but at least you'll know what your top limit is.  Usually we'll see someone be approved for a higher number, like $310,000, but to be comfortable with the payment, they really want to be closer to $260,000.  In this market you can really get a lot for your money depending upon the town - it's a great time to buy.