There is a MAP of Atlanta, South Georgia and even Newnan for people qualifying for a $5000 grant towards purchasing a home for 3% DOWN. They also receive a $500 appraisal credit and a $500 inspection credit. Do you want to know if you qualify? Do you want to forward to that friend/family member/client who needs that help? NO INCOME RESTRICTIONS!! It's based on where you live NOW, not where you are purchasing. Contact me at 678-467-2330 to get the map. We can check that first and then apply for confirmation PRIOR to finding that perfect home.
LOAN THIS MONTH: CAN I PURCHASE WITH NO MONEY?
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My client thought the best program would be the USDA loan which requires no down payment, but the USDA program looks at household income, not borrower income, so they were quickly disqualified. Instead, by working hand in hand with some awesome sellers, we were able to offer my client a FORGIVEABLE second mortgage at ZERO interest for three years with NO payment and no funds at closing. They paid for an appraisal and credit report only. Sound too good to be true? It’s not!
Here are a few guidelines
If this sounds like something that *might* work for your purchase in Georgia, let’s brainstorm as to whether you're a fit. Send me a text or call me at 678-467-2330. Elizabeth Washburn
ACCESSING THE 401(K)
Before you race to the bank and cash-out your retirement to purchase your castle, take a few minutes to assess the implications outlined below.
LIQUIDATION
Ordinarily, you can't take money from your 401(K) plan until you retire, leave the company or become disabled, but many accounts permit certain “hardship withdrawals” when there is an immediate financial need. While hardship withdrawals are allowed by law, your employer is not required to provide them in your plan. Sometimes this "hardship withdrawal" includes the purchase of a principal residence. If unsure as to whether yours does, check with your employer’s human resources department.
The drawback of liquidating in this manner is that the funds are immediately taxable since they were saved tax free. Likely they would be taxed at your current tax rate, but it could be higher if the fund liquidation puts your income into a higher tax bracket. There is also a penalty, typically 10% of the funds withdrawn. The exact amount of the penalty is spelled out in your plan.
LOAN
Another option is borrowing against your 401(K). Often you can borrow as much as 50% of your account balance. You pay interest on the loan, and the interest is credited back to your account. Sounds great, eh? The money you receive is not taxable either (as long it is paid back), and there is no penalty. Most plans offer anywhere from five to thirty years to pay the loan. In a perfect world, it's a perfect plan!
When you set this ball in motion, it is very difficult to stop so make sure you lender has seen the account where you plan to deposit the funds BEFORE you do it. A good broker has an eye for anything funky on a bank statement. Also, keep a copy of ALL the paperwork. This includes applying for the liquidation, any correspondence from the bank, any check or wire record, and the printout from the bank showing the funds transferred into your bank account. Be in full communication during the liquidation process so nothing gets in the way of obtaining your new home.
PREPARING
Whether you're anticipating a total solar eclipse or a future home, both require preparation to get what you want out of the moment and save yourself from future headaches.
Here are two scenarios where I typically offer advice when given the time (61-90 days) to make the loan happen.
You're self-employed.; Move the money you are using for the purchase of a home to your personal account. If you have down payment in your business account, you can use it; however, the lender will want to "source" the funds in your business account(s). This means if there is anything private, like account numbers or client names in the bank statements, you may be revealing more than you desire. By having the funds transferred to your personal account more than 60 days before you go to underwriting, lenders can stay out of your business.
You're getting a gift for the down payment. If they love you enough to give you the money, perhaps they trust you enough to give that money 61 days ahead of underwriting. Of course, gifts are allowed on many loan programs if the transfer is documented and you have a gift letter; however, if the funds are already in your account for two months, the money is no longer considered a gift. This actually improves your qualifications in underwriting because a loan using your own funds for the down payment is considered a less risky than a loan with gift funds. If it is yours for 60+ days, it is no longer a gift.
As a last tip, I offer Fully Underwritten Loans WITHOUT a contract. In other words, we can turn your offer into the equivalent of a full cash offer pending the appraisal and title work. This is a powerful option at your disposal for those hard to obtain homes. Please let me know if I can help you purchase a home in Georgia.
*Eclipse photo taken near Dillon, GA on August 21,2017 using Canon Rebel T6, 300mm lens.