I've been looking into some tax forclosures in milwaukee, Wi, as a first home/investmen. I was wondering if anyone here had any experience the homebuyer assistance program. To anyone unfamiliar they are offering a forgivable loan of 50% up to 40k for owner occupants for single family and duplex style houses contingent on staying in the home for 5 years. I would have to attend a class about the home buying process in order to qualify which is two-four hour classes. I think that this is a great option for me as I was already looking to buy a home using a 203k. Any insight would be helpfull. Thanks everyone
Sounds like a neat program.
Just remember that probably none of these houses is move in ready.
But go to the class, hear the stories, check it out.
Tough to mess things up with a 50% foregivable loan on what nice deals are already.
@Bruce Lynn Yes none of them are move in ready but the city also provides a "scope of work" analysis with each property which give a pretty comprehensive list of repairs and code violations that would needed to be fixed before living in the property. Of course I would have to get bids from contractors to get my ducks in a row and to verify the scope of work.
It would be tough to get a bad deal if i get invest 40k in a property and only pay 20k.
I don't have any insight into this program but it sounds very intriguing. Where did you learn about it/Where can I find more information on this program. If I come across anything helpful I'll keep you posted.
I believe you need to spend an equal amount first before the loan is given. That could be a different program but I know they want you to have some equity in the property.
Disclaimer: I'm not an expert on this particular program, but I recently participated in a session for those of us trying to help people take advantage of it and may have some helpful information for you.
The program is matching funds, but your purchase price counts as part of the matching funds. So if you purchase a property at $20k or higher, you get the $20k for repairs. Like all good things, there are few catches.
1. You must have enough funds for the purchase and rehab between your own funds, bank loan (partner lenders listed on the website), and the forgivable loan.
2. Good news, you get a city employee to oversee you project. Bad news, you cannot do sweat equity, they will solicit bids from 3 city-approved general contractors.
3. That brings us to the hardest catch for people to handle, the process of obtaining and approving the contractor bids is currently taking 60 to 90-days.
Overall, you can't beat free $20k. My daughter took advantage of the program and she is very satisfied with her end result. This program has been around for some time, and she is now at her 5-year mark.
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