Grant as a down payment.

[Greg Parker]

Never run into this before. Reviewed an agreement of sale, noticed the biggest portion of the downpayment was a grant from the Philadelphia Housing Authority. $3,500 of a $115,000 sale.

There is also a 3% seller assist. Would you treat this grant the same as concessions in terms of creative financing? It is coming from a redevelopment program for the area.

 

[Greg Parker]

Need to rephrase... If, in your market you are adjusting $ for $ on concessions would you include the downpayment in that adjustment. It is a $6950 concessions from where I am standing... just looking for input.

 

[Lost Cause]

A Benefit, But Not A Seller's Concession

While the buyer benefits from the $3500 grant, the seller isn't giving anything up by accepting the grant as part of payment. I see no reason to adjust as if the grant were a seller's concession.

 

[Thern Newbell]

Did it affect the price, when compared to other sales that lacked the concessions?

 

[Greg Parker]

Yes. It's over priced to begin with, concessions are simply exacerbating the issue. Property is about 20% over market, with no rhyme or reason, but partially due to the PHA as part of the sale process in my opinion.

 

[Mr Rex]

Is this your subject?

 

[Don Clark]

How about if a parent gave the same amount to one of their children as a down payment? Would that also be a concession? Come on. Some of this stuff is ridiculous.m2:

Next question, someone will ask if this is a USPAP violation.

 

[Greg Parker]

How about if a parent gave the same amount to one of their children as a down payment? Would that also be a concession? Come on. Some of this stuff is ridiculous.m2:

Next question, someone will ask if this is a USPAP violation.

Explain how it is ridiculous when on page one of the URAR specifically asks us to outline special concessions for loan charges, concessions, gift or downpayment. Furthermore, it is outlined in the agreement that this is coming from the PHA, complete with an addendum outlining the source of the funds. Seems to me that is a little different than parents giving a downpayment.

Responses like yours, Clark remind me of the broker appraisers bemoaning the lack of USPAP forms in classes. If you don't have help, or a valid opinion,. please don't waste my time with your non helpful commentary and idiotc emoticons.

It's a shame this board does not have the function of other social sites to simply block responses of those with nothing helpful to say. It would be a pleasure to add you to the like of Dr. Manhattan and other Trolls.

 

[Michigan CG]

It's a shame this board does not have the function of other social sites to simply block responses of those with nothing helpful to say.

Greg,

In your User Control Panel you may put other members of the forum on ignore and you will no longer see their posts.

Moderator.

 

[Mile High Trout]

CO has something similar here in Adams County. CHFA - typically called Chaffa.

This assists the buyer with coming forth with the necessary down. Typically a 2% abouts figure on moderately priced housing. CHFA loan is a small piggyback type loan which rides with FHA and is tied up so it's not a traditional second, per say. I think that's how it works at least.

CHFA purchasers typically still ask for seller closing costs.

It does not matter where the down comes from. That's borrowed to the buyer. The concessions that matter are the ones that effect the sellers net. If I'm understanding you correctly, you've got a downpayment assistance grant which does not influence the sellers net take.