Today, I had a closing where the Buyer almost didn’t close. It seems the closing costs were about $800 higher than expected. I wasn’t on the Buyer’s side so not quite sure where the issue came in.

Probably just first time home buyer jitters and some lack of communication between the Buyer and her mortgage broker. Eventually though the Buyer came around and the deal closed.

I’m so glad it did. Not only for my Seller’s sake but also for the Buyer’s. Here’s why.

The Buyer was getting down payment assistance through a program named S.H.I.P. This is the acronym for “State Housing Initiative Partnership". This is a program through the State of Florida that assist homebuyers in purchasing a home.

The buyer must:  

• Meet the income requirements. Annual household income cannot exceed 120% of the area median income.
• Provide at least $1,000 of their own funds.
• Complete a home buyer’s education seminar.
• Secure first mortgage financing.

The property must:  

• Be new or existing and located in Orange County, outside the city limits of Orlando.
• Not exceed a sales price of $219,000.
• Receive competitive fixed rate financing.
• Be fee simple ownership

Funds from S.H.I.P. are given as a 2^nd mortgage but have no payment. In fact, after 15 years (I think), the mortgage is completely forgiven and does not have to be paid back. The mortgage amount decreases for every year the homeowner remains in the property.

This particular Buyer received almost $60,000 of the $120,000 purchase price!!! What a deal.

When the Buyer’s agent called me to tell me the Buyer was balking at $800 I just couldn’t believe it. I mean really…..you’re getting $60,000 on a 15 year interest free and payment free loan.

Of course, I don’t blame the Buyer for being concerned about an $800 difference in the closing costs. $800 is a lot of money and should be questioned.

I’m just glad the Buyer was able to get their head around the fact that this was a very good deal and they needed to close. Fortunately they did.

Anyway, if you are interested in purchasing a home in the Poinciana area….well give me a call, maybe we can you some money. Money for nothing is a very good deal. What say you?

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