Layout:
Home > Not sure what to do

Not sure what to do

May 4th, 2008 at 02:48 pm

The city in which I live in is offering grants for first time home buyers, upto $50k which can be used for a down payment or closing cost. It is based on first come first serve, and fire fighters, nurses and teachers gets first dibs. However, I have a few little things that I need to clean up on my credit before applying for a mortgage but I am wondering if I should ago ahead and apply for the grant. I am nit really ready to move until December or next January.
Here is a quick overview:
The XXX Community Redevelopment Agency (CRA) teamed up with developer Cornerstone Group to include affordable housing at XXX, a master–planned luxury condominium and townhome community located in XXX.
Here is a quick review:
Through the joint financing effort, income– eligible buyers can qualify for as much as $160,000 in financial assistance on a condo or townhouse. With up to $60,000 developer contributions, up to $50,000 in funds from the State Housing Initiatives Partnership (S.H.I.P.), and another potential $50,000 from the CRA’s Homebuyer’s Assistance Program, the price on a $279,990 three–bedroom condo can be reduced to as low as $119,990.


Located at XXX, The XXX offers 180 two and three–story townhouses and condos at market rate prices ranging from $279,000 to $299,000. 50 units as affordable housing for people who meet certain income guidelines are designated Applicants’ income cannot exceed 120 percent of Palm Beach County’s median household income relative to family size. For a family of four, that would be $77,280.
So what do you think? Should I apply or wait until I am actually ready to move in Dec/Jan

8 Responses to “Not sure what to do”

  1. creditcardfree Says:
    1209914850

    Questions for you to think about....

    Have you looked at the application? Does it say you need to use the grant by a specific time? Is this your only chance to get into the home, with the grant? Is this the location you want to live in, or is it more attractive because of the grant? Do you have any idea if the grant will still be available in December and January? Is there someone you can call and ask a few questions?

    Just some questions it brings up for me. I don't think it would hurt to apply now. It may even take awhile to be approved for the grant, plus time for your own loan approval. Six months is not that far away. I also don't think it hurts to wait.

  2. monkeymama Says:
    1209915063

    I don't think it would hurt to apply now, but I think these grants will be plentiful when you are ready. These programs were quite common during the boom, and maybe even moreso with the current state of housing.

    I assume it doesn't hurt to apply though. You might get a great deal and be able to move sooner?

  3. luxlivingfrugalis Says:
    1209916305

    Call someone at the agency and ask about what kind of condition they need the credit score to be in. Can't hurt to ask surely? Then work like the dickens to get it in line. Sounds like a great deal IF you want to live there.

  4. frugaltexan75 Says:
    1209926213

    I'd also be curious about what the conditions are regarding if/when you decide to sell later on? Also, are these homes in a good area? I've read somewhere about grants being offered to teachers to live in not so desirable neighborhoods . . . or if you move/sell within a certain timeframe, then you have to pay back the grant, etc.

    In other words, I'd check carefully into all the ins and outs of it.

  5. Amber Says:
    1209943023

    Thanks guys, I am actually going down to the agency on Thursday to get a little bit more details. I guess that would be the best thing, but in any case I am definately working my but off to clear/clean up my credit; I want the best possible loan there is especially since rates are at an all time low

  6. scfr Says:
    1209954228

    Normally I'm all for waiting, but in this case I'll say it's definitely worth looking in to.
    I used to live in a Master Planned Community. By law, they were required to put in a certain number of "affordable housing units" that they basically sold at or below cost to folks who otherwise would be priced out of the community. I know 1 State Patrol officer lived there, as did 1 library worker. (The others I don't know what they did for a living.) The houses were cute, and the people who qualified to buy them got a really terrific deal. When some of the houses were sold, they made incredible profits.

    A few things to think about (some have already been mentioned):

    - Make sure the agency is a bonafide government or non-profit agency, and that it is not some sort of scam.

    - Are you required to live there for a minimum number of years? [Where I lived, there was a requirement, because they wanted to sell to people who would actually make the community there home, not investors/flippers.]

    - Are you aware of all of the costs of home ownership (mortgage payment, property taxes, HOA dues, upkeep) and are you confident you can handle them?

    This could be a fantastic opportunity for you, but proceed with caution. Good luck whether you decide to go for it or wait ... I know you'll make the right decision.

    And BTW, you know what you need to do to move yourself closer to getting that house, whether now or later, don't you? RETURN THAT PURSE!!! Wink

  7. scfr Says:
    1209954641

    P.S. - And isn't it fantastic that you are in a position where you can actually consider doing this? Would you have dreamed it would be possible in Feb 2006 when you started this blog?

  8. Amber Says:
    1210040330

    SCFR, I never even thought about it. It is a reat feeling as well as scary

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]