1st Time Homebuyer
Cash Ready Program
Simple, Swift, Smart, Secure
The FHFA is helping 1st Time Homebuyers with affordability
And when their assistance is partnered with MegaStar’s proprietary Cash Ready Program, those 1st Time Homebuyers are poised for an exclusive opportunity to not only win against other bids, but also save potentially thousands of dollars doing it!
Allows you to make an offer with just a 7-day due diligence inspection
Seller doesn’t have to worry about any financing or appraisal contingencies after 7 days
After the inspection period, your earnest money deposit is protected by MegaStar
Close in just 10 days
A 1st Time Homebuyer is anyone who has not owned a property in the last three years.
Why would they consider buying in today’s market with rates up from where they were a couple of years ago?
The Federal Government Agency known as the Federal Housing Finance Authority is helping 1st Time Homebuyers with affordability. First Time Homebuyers who earn at or below the local Area Median Income (AMI) are able to obtain a primary residence at a great interest rate. For example, on January 31st the 30-yr fixed rate with 3% down with a loan amount of $552,900, debt to income of 40%, 660 minimum FICO buying a single-family dethatched house, would be 6.000%, with a 6.207% APR. Rate example is updated weekly. Please note rates are subject to change.
MegaStar is working with 1st Time Homebuyers to position them to make the seller an offer with no financing or appraisal contingencies. This enables them to compete with other offers subject to financing and with companies offering cash.
And since most sellers are ready to jump at a cash offer opportunity, homebuyers can usually offer 5% below the listing price and STILL win against other, higher bids. Just think, on a $500,000 home, winning an offer for 5% below the listing price would save homebuyers $25,000 right from the beginning.
What are other reasons to consider buying now?
If you are renting, you are really paying 100% interest. Also, your rent payments go to paying your landlord’s mortgage, not yours.
Additionally, when you purchase with a fixed-rate mortgage, you are not going to get priced out of your neighborhood. With the cooler real estate market today, if you find your dream house you may not be competing against 2 or 3 buyers and be able to negotiate a good deal.
Most 1st Time Homebuyer families do not have the cash to make an offer that isn’t subject to financing. Does this program require MegaStar buy the house then sell it back?
The family is the buyer on the contract and is the buyer who closes on the loan. No double closings, or rent backs. MegaStar works with the client before they go shopping and we make them a Cash Ready buyer.
When the buyer gets a Cash Ready certificate from MegaStar, they can make an offer subject only to a 7-day due diligence inspection. The Sellers need to see they have a solid commitment from a buyer after the due diligence inspection period so they can be confident that the contract will not fall through because of financing or the appraisal.
What is the risk to the buyer using this program?
The risk is no different between a Cash Ready buyer and a financed buyer.