| Despite its relative obscurity, a great investment tool | | | | organization that will fund up to six percent for the |
| for college bound students is growing in popularity | | | | purchase; three percent of which can be used for the |
| among savvy college parents. The FHA loan program, | | | | down payment and three percent which can be used |
| affectionately nicknamed "Kiddie Condo Loans", is one | | | | for closing costs. Your mortgage lender would fill out |
| of the best programs out there to help jump start a | | | | the paperwork on your behalf. Six percent would be |
| student's credit and provide a low down payment | | | | written into the purchase price as a contribution to |
| option for cash strapped parents to purchase a home | | | | Nehemiah. The organization in turn, at closing, gives all |
| for their son or daughter. | | | | of it back to the seller, less a $500 contribution from |
| For details on the loan program, I went to Steve | | | | the buyer. So, the net out of pocket from the buyer is |
| Beecham, President of Hometown Mortgage in | | | | the $500. |
| Alpharetta, Georgia. Steve's excitement over the | | | | Obviously, there are some ground rules for the |
| program is evident as he explains, "There are few | | | | program, some of which are: |
| programs, if any, left in the market place where a | | | | 1. At least one of the buyers (usually the college |
| co-signer doesn't have to live in the property." The | | | | student), must occupy the home. But extra bedrooms |
| bottom line is a college bound student can qualify, with | | | | can be rented out to help defray the costs of the |
| a parent's help, for as little as $500 down. | | | | mortgage. |
| The FHA program actually requires three percent | | | | 2. Qualifying guidelines are based on the student's and |
| down. However, that three percent can come as a gift | | | | the parent's credit and income. Generally, both parties |
| from several different places, such as: | | | | must have a credit score of at least 580. |
| 1. A relative by blood, marriage, or law | | | | 3. If it is a condo, then a majority of the condos in the |
| 2. The borrower's employer | | | | complex must be owner occupied. |
| 3. A charitable organization | | | | Also, don't let the nickname fool you. This program can |
| 4. The seller (can give up to six percent) | | | | be used on virtually any property, not just condos. And, |
| One easy source for the funds might be the | | | | it can be used up to a maximum loan amount of |
| Nehemiah Down Payment Grant. This is a charitable | | | | $346,000 for homes inside Metro Atlanta. |