Lender requesting removal of verbiage

[John LaBelle]

I thought Ameridream was an FHA program.

Ameridream is not a FHA program, but it is used with a FHA loan because FHA loans allow the dowmpayment to be a gift.

Ameridream is a downpayment assistance program. Here is how it works. Ameridream gives a gift to the buyer (up to 10% I beleive) for their downpayment. The buyer does not need to repay the gift. In lieu of cash back at closing or lowering the sale price, the buyer asks the seller to give a gift to the Ameridream program (the gift amount is the same as the gift received by the buyer).

Here's a link to their website: http://www.ameridream.org/

 

[Couch Potato]

Ameridream is a downpayment assistance program. Here is how it works. Ameridream gives a gift to the buyer (up to 10% I beleive) for their downpayment. The buyer does not need to repay the gift. In lieu of cash back at closing or lowering the sale price, the buyer asks the seller to give a gift to the Ameridream program (the gift amount is the same as the gift received by the buyer).

Or to put it more succinctly, it is a common scam to artificially inflate the sales price of a house.

 

[liberated]

You could always use Zillow as your "backup AVM".

 

[Metamorphic]

Or to put it more succinctly, it is a common scam to artificially inflate the sales price of a house.

Who benefits from this besides the tax man?

 

[Caterina Platt]

You could always use Zillow as your "backup AVM".

Yea. Funny thing about is, the paid services really aren't any better than Zillow in our area.

All our comp checker calls start out: '...I've tried my usual sources to determine whether we're in the ballpark or not, and for some reason, we just can't get them to work.'

Speaking of.....this is another thread, but now that I think of it, comp check calls have been at an absolute nil over the past 2-3 weeks. Hmm.
Another sign of our times, eh?

This is actually the first gift program deal I've seen in a long time as well. Thank goodness! This is an unusual situation where it's a non-arm's length family transfer at well below market, so the value pressure wasn't one of the problems.

 

[Otis Key]

Yea. Funny thing about is, the paid services really aren't any better than Zillow in our area.

All our comp checker calls start out: '...I've tried my usual sources to determine whether we're in the ballpark or not, and for some reason, we just can't get them to work.'

Speaking of.....this is another thread, but now that I think of it, comp check calls have been at an absolute nil over the past 2-3 weeks. Hmm.
Another sign of our times, eh?

This is actually the first gift program deal I've seen in a long time as well. Thank goodness! This is an unusual situation where it's a non-arm's length family transfer at well below market, so the value pressure wasn't one of the problems.

Don't hold your breath - I got some a couple of weeks ago and one last week.

 

[Mztk1]

I get AmeriDream programs all the time and the other one in my area, the Nehemiah Foundation. They are a great gig and I'd love to open up one of these places myself! FHA will loan up to 97% so the gift programs I've seen have only been 3%. The seller agrees to pay 3% to the AmeriDream program plus the application fee (which is anywhere between $250 and $550 and I don't know why they vary), and in return the AmeriDream foundation will gift the 3% as a downpayment for the buyer. AmeriDream does not pay closing costs, so that might be an issue they have with your wording, and I don't know how "atypical" or "unusual" it is. I bet it is fairly common even where you are.

What drives me nuts is when there is 3% towards AmeriDream and 6% towards closing. Uh, values are dropping people! 9% can really add up!

Here's what I put on the last one I did with no troubles:

The seller has agreed to pay 3% towards the AmeriDream Gift Program and also pay the $500 application fee for the program, from which the buyers will receive a 3% gift towards downpayment. The sellers have also agreed to pay $8,900 towards the buyer's closings costs and prepaids. The concession and participation in the gift program had no effect on the appraised value.

I used to use Win2Data but I found their data was wrong a lot. Wrong sale prices, wrong sale dates, just not very reliable. Their living area and square footages of houses were weird, and lot sizes not strong. I just rely on the government websites for public record and private sales now (which are very strong systems here in FLA). I also don't like how First American CoreLogic has a monopoloy (or near monopoly) on the entire system these days.

 

[Terrel L. Shields]

why waste your breath changing it? Sounds like she is perfectly capable of changing it for you....

 

[Couch Potato]

Who benefits from this besides the tax man?

The buyer gets the benefit of a lower LTV ratio. (Assuming the get some Skippy to do the appraisal that fails to recognize it a seller concession.)

 

[OSU Beavers]

Caterina,

What is the sales price?