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One of the biggest challenges that comes of selling a home is getting a ready, willing, and able buyer to actually submit a purchase offer. Once a purchase offer is received, it’s now time to review the purchase offer with your Realtor.
One of the most frequently asked question from home sellers relates to the terms and conditions of a purchase offer. More specifically, a common question is, “Should I Accept A Purchase Offer With Home Buyer Grants?”
The answer to this popular question is YES, you should accept a purchase offer that has home buyer grants, for many reasons. There are many home buyer grants available to not only first time home buyers but also programs that are available to repeat home buyers.
In this article, I will give several reasons why accepting a purchase offer with home buyer grants is a good idea as well as provide a recap on some of the most popular home buyer grants. After reading this article, you will also agree that accepting a purchase offer with home buyer grants is a good idea!
What Are Home Buyer Grants?
There are many different home buyer grants and they can vary significantly from city to city, however, the concept of home buyer grants is the same. A home buyer grant is some form of concession or credit given to a buyer to help offset the costs associated with buying a home. Many home buyer grants have strict requirements, income limitations, as well as education requirements.
Why Should I Accept A Purchase Offer With Home Buyer Grants?
Home Buyer Grants Are Not Given To Everyone
One of the most popular misconceptions about home buyer grants is that they are given to every single applicant. This is actually a very common real estate myth about home buyer grants and quite the opposite in reality.
When a potential buyer applies for a home buyer grant, they are asked for many of the same documents that they will be asked for when getting pre-approved for a mortgage. Many home buyer grant programs require the applicant to provide proof of income through tax returns and proof of stable employment. This is a great reason why accepting a purchase offer with a home buyer grant is good idea.
Home Buyer Grants Allow The Buyer The Ability To Purchase A Home
Since buying a home is not cheap, home buyer grants are becoming more and more popular. Purchasing a $100,000 home, depending on the real estate taxes and the mortgage program, will cost a buyer between $8,000 – $12,000.
Many home owners who are selling their home don’t understand why they should accept a purchase offer with home buyer grants. This is similar to home owners having a problem accepting an offer from a buyer who is in need of seller concessions.
One of the most important reasons why it’s a good idea to accept an offer with home buyer grants is because a home buyer grant gives a home buyer the ability to purchase a home. Some sellers don’t understand that a mortgage does not cover all of the closing expenses for a home buyer. They neglect to remember that a home buyer is responsible for more than just a small down payment on a home.
Home buyer grants allow a buyer who may not have all of the money required to buy a home actually buy a home.
Home Buyer Grants Show Dedication From The Home Buyer
Every home buyer grant has different requirements and minimum qualifications. A good reason to accept an offer with home buyer grants is the fact that many home buyer grant programs require such strict requirements and qualifications.
Many home buyer grants require a buyer to have extremely strong credit scores, in excess of 650-700! A buyer who has a credit score of 700+ is normally a very dedicated and responsible person, which is a great reason to accept their offer even with a home buyer grant contingency.
In addition to the fact that home buyer grant programs have such high requirements for credit scores, many of them also require education classes to be taken. A home buyer that has been educated on the home buying process, has done their research on what tips and tricks they should follow when buying a home, and one who understands what to expect when buying a home is in most cases going to be much easier to deal with throughout the transaction.
An Offer With Home Buyer Grants Is Better Than No Offer
Finding a ready, willing, and able home buyer is not always the easiest task. When selling a home, you need to understand that it doesn’t always happen the first day on the market or even the first month. There is no possible way to predict how long it will take a home to sell.
“Something is better than nothing,” this basic statement is yet another reason why accepting an offer with a home buyer grant contingency is a good idea. Even though many home buyer grant programs may take a few extra weeks to close, having an offer from a buyer is better than not having anything.
Remember when deciding whether you should take an offer with a home buyer grant contingency that if you have not received any other offers or have not been having showings at your home, you should strongly consider taking the offer even though there is a home buyer grant contingency.
What Are The Most Popular & Common Home Buyer Grants?
Below are some of the most popular home buyer grants that are available to home buyers nationwide as well as some popular Rochester, NY home buyer grant programs and incentives. If you receive a purchase offer with a home buyer grant contingency, it’s possible you may see one of the following home buyer grant programs.
First Home Club
The First Home Club is a program that is available in a few different states through several different lenders. The First Home Club is established through Federal Home Loan Bank of NY (FHLBNY). This club requires that a home buyer makes monthly deposits into a savings account with the end goal of accumulating roughly $1,900 within a 10-24 month period.
Once a buyer is able to save the required amount of money, the Federal Home Loan Bank of NY will provide a buyer a grant to use towards their closing expenses. The FHLBNY matches $4.00 to $1.00 up to $1,875, which equates out to a home buyer grant of $7,500 for the First Home Club member.
This home buyer club is available to first time home buyers as well as persons who have not owned a home within the last 3 years, single parents, or displaced homemakers. Since this program requires a minimum time involvement of 10 months, it can sometimes be a great option for those home buyers who are not in an immediate rush to purchase a home.
Local Home Buyer Grants & Incentives
Home Purchase Assistance Program (HPAP)
One of the most popular Rochester, NY home buyer grant programs is the Home Purchase Assistance Program, also known as HPAP. This program is governed by the City of Rochester and is available for home buyers purchasing a single family or two family home within the City of Rochester.
This program requires a minimum buyer contribution of $1,500 and provides a buyer up to $3,000 to use towards their down payment and closing costs. This home buyer grant program, like many, require the home buyer to attend a pre-purchase education class as well a post purchase education class. The HPAP grant also requires a very brief inspection by a City of Rochester inspector who is primarily looking to ensure the home has smoke detectors and carbon monoxide detectors in place, prior to closing.
This home buyer grant program requires the home buyer to stay in the home for 5 years, otherwise, the buyer maybe subject to paying a prorated amount back to the City of Rochester. This program is a very popular program for those who are looking to purchase a home with little or no money down as it requires a very small contribution from the buyer.
SONYMA Programs & Grants
Through the State of New York Mortgage Agency, also known as SONYMA, there are several home buyer grant programs and incentives for New York residents. There are SONYMA programs available for low income earners, veteran home buyers, home buyers looking for a “fixer-upper,” and also loans available to assist home buyers with the down payment.
SONYMA mortgage products are a great option for not only Rochester, NY home buyers, but also for other home buyers who reside in New York.
When you set out to sell your home and finally receive a purchase offer on your home, remember, accepting an offer with a home buyer grant can be a good idea. It’s important that when interviewing prospective Realtors to sell your home, you ask them if they have experience dealing with home buyer grant programs. The reason this is important is because more and more home buyers are needing the assistance from grants and incentive programs.
A Realtor who has experience with dealing with home buyer grant programs should know what type of questions to ask the buyers agent or the buyer themselves. Overall, home buyer grant programs are a great thing for the real estate market. They allow home sellers like yourself to sell your home and allow home buyers the ability to purchase a home.
Other Top Home Selling Resources
If you’re considering the sale of your Rochester, NY home, you must be aware that the probability of receiving a purchase offer with a home buyer grant contingency is possible. Having a strong understand of why it’s a good idea to accept a purchase offer with a home buyer grant is critical as well as understanding what the most common grant programs are. If you have not chosen a Rochester, NY Realtor, contact me and I’d be happy to explain many of the most common home buyer grant programs in Rochester, NY.
About the authors: The above article “Should I Accept A Purchase Offer With Home Buyer Grants?” was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock). With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise.
We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.
Visit our website at www.HiscockHomes.com.
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