| LENDER
QUESTIONS
Q. - What lenders are allowed to use the FHP
Program?
A. - Any lender that funds FHA loans.
Q. - Is the FHP Program government approved?
A. - Yes. See mortgage letter 00-8.
Q. - Do we need to contact FHP directly in order
to use the program?
A. - No. Everything you need to request funds
and process your loan is located here on the FHP web site.
Q. - How hard is the FHP Program for us to use?
A. - It is easy and there is very little paperwork.
Q. - What do we need from FHP for this program?
A. - FHP Federal ID # 58-2200391 must accompany
all FHP Program loans.
BUYER
QUESTIONS
Q. - Who is Family Home Providers and why do
they do this?
A. - Family Home Providers is a non-profit, private
funded affordable housing program that helps families realize the
American Dream of home ownership and change their lives forever.
It is that simple, we help others to live better lives.
Q. - Who can use the Family Home Provider Program?
A. - Any buyer who can qualify for a FHA loan.
Q. - How much down payment money will I be able
to get?
A. - 3% of the contract price of the house under
the FHA guideline limits.
Q. - How can I use the FHP Program to purchase
a home?
A. - Contact your lender, if your lender is not approved for this
program, or is unaware of our program. Have your lender then contact
us at 770-887-4578 and we will approve your lender to use the FHP
Program.
Q. - As the buyer, will I ever have to pay this
gift money back?
A. - Never. This is a gift and the buyer is under no obligation
to repay this gift.
Q. - Why should I attend a free FHP Home Buyer
Education Workshop?
A. - Buying a home, especially for the first time,
can be one of the most intimidating and stressful processes you
can go through. By attending the FHP Home Buyer Education Workshop
you can have your questions answered in an environment you will
feel comfortable with, and you will also receive information that
will make your home buying process stress free.
Q. - How do I find a homeowners education class?
A. - Click here for more information on the next FHP Home Buyer
Education Workshop, or your lender or real estate agent will have
class schedules available for you. If you are in the Atlanta area,
FHP has a four-hour class. It is at no charge to the buyer.
Q. - Am I limited to a specific type of property?
A. - No. You can buy anywhere and may purchase
a new home, a re-sale home, town home, condo, triplex, duplex, or
a quadplex. As long as the home meets all FHA guidelines and appraises
for the sales contract price.
Q. - How long do I have to find a home under
this program?
A. - Take as long as you like and find the home
of your dreams. Your real estate agent will help you with all your
needs, and the lender will answer all your questions.
Q. - Is the FHP Program really as good as it
sounds, or is it too good to be true?
A. - We agree, but this is one of the true great
programs that does just exactly what it is designed to do. To place
families into homes that would otherwise have to rent. There is
no obligation and you move in with a 3% down payment that is a gift
to you. All you have to do is ask your lender to contact us and
we will give the gift when you qualify for a FHA loan and purchase
a home using the Family Home Provider Program.
Q. - Is there a limit to the price of the home
I can buy?
A. - Yes. FHA has a guideline as to the amount
of the loan they will insure. It goes according to State and County.
Ask your lender and they will give the amount for your area. It
can be up to $166,000. Ask your lender.
Q. - Do I have to live in the house for a set
time period?
A. - When you have a FHA loan, FHA would like for you to live in
the house at least one year.
Q. - Do I have to pay higher interests rates
and higher closing costs?
A. - No. The interest rates are standard FHA rates, at the time
of the loan, to everyone according to each person's credit rating.
The seller pays the closing costs.
SELLER
QUESTIONS
Q. - As a seller, can I still sell my house
using the FHP program?
A. - Yes, as long as the house qualifies
for an FHP loan.
Q. - What is the advantage of selling a property
using the FHP program versus a regular sale?
A. - It opens the house to many more buyers. The
house usually sells in less than 30 days. Normal sales take four
to six months. This will save you up to $3,400 in monthly payments.
Q. - Do I have to pay any money up front?
A. - No. The service fee is paid only after closing. It is taken
from the seller's funds by the closing attorney and wired to FHP
within 24hrs of closing.
Q. - What does FHP do with the service fee we
pay?
A. - FHP uses the service fee to help other families purchase homes.
We also donate to abused children's homes, feed the homeless, and
set up college scholarship funds.
Q. - If I use the FHP program to sell my house,
will my net proceeds be less than with a regular program?
A. - Not necessarily. In most cases, a house sells for the appraised/asking
price and the seller makes more money. See example BELOW
| |
Regular program |
FHP program |
| |
|
|
| Final contract price |
$95,000 |
$100,000 |
| Closing cost |
$2850 |
$3000 |
| Real estate commission |
$6650 |
$7000 |
| One year warranty |
$370 |
$370 |
| FHP Program service
fee(4%) |
0 |
$4000 |
| |
|
|
| Net dollars to seller |
$85,130 |
$85,630 |
|
