than the asking price for a home. And if you raise the price, the buyer may not be able to resell the house later.”
Neighborhood Gold offered the Eameses $2,500 toward a federally insured FHA mortgage.
To avoid the problem of inflated home values, which have plagued similar housing assistance programs, the Eames’ mortgage broker, Trico Mortgage Services, had an underwriter scrutinize the loan terms. The Eameses also compared the $82,000 asking price for the 2,800-square-foot, four-bedroom home they sought against recent sales in that area.
“It was a steal,” Andre says. “Houses in our area usually start at around $90,000 and go up to $140,000. The seller just didn’t want the house anymore because his kids were grown.” So the Eameses agreed to pay the full purchase price and accepted the grant. They only had to pay $800 in out-of-pocket expenses. Some buyers in the program pay nothing at all. “It helped us get the house without spending everything we had,” says Andre.