Easy steps to Funding

   1. Lender sends closing documents and Gift Funds Request to closing office
   2. Real Estate Agent or Seller provide Closing Office with Participating Home Agreement.
   3. Closing Office requests Gift Funds from Alliance.
   4. Alliance reviews settlement statement and wires Gift Funds to Closing Office.
   5. Closing occurs efficiently and with no surprises!

   What is an eligible Loan Program?

An eligible loan program is any single-family mortgage loan that allows charitable organizations to provide Gift Funds to a buyer for use towards their down payment and/or closing costs. FHA guidelines allow a gift from a charitable organization (such as Alliance) as an acceptable source of borrowers “Funds to Close” (HUD Handbook 4155.1, Rev-4, Chg-1, Para. 2-10C).

   Isn’t the seller just paying the buyers down payment?

NO! Prior to recording, Alliance wires the buyer’s gift money to the closing office. This gift comes from Alliance’ pre-existing pool of funds. The contribution that Alliance receives from a seller is NOT used as a down payment assistance for the buyer of that particular seller’s property. The seller makes their contribution to Alliance only AFTER the successful closing. Alliance gifts its own money from a pre-existing fund.

   Are Participating Homes overpriced to accommodate the additional fees?

NO. A Alliance participating home usually sells for full market value. It is less likely that a seller will need to accept a “reduced” offer for their property. Market value is then confirmed by a URAR appraisal to ensure that the home is not overpriced.

   How does the seller benefit by using the Alliance program?

By using the Alliance Program a seller can market their home to a much larger group of prospective buyers than a home that does not utilize the Alliance Program.

There are numerous people that want to buy a home, have the employment and credit to qualify for a loan, but do not have the $5,000+ necessary for the down payment and closing costs. The Alliance Program can bridge this gap.

In essence, the Alliance Program helps bring buyers to the marketplace. Since there are more qualified buyers in the market with the help of Alliance, a Alliance participating home has the chance of selling faster that a non-Alliance home. More buyers also helps to maintain, if not increase, property values.

   How much does a seller contribute to Alliance?

Alliance receives a contribution equal to the Gift Amount that Alliance provided to the home buyer plus $295. A seller makes a contribution ONLY if the home is sold utilizing a gift from Alliance.

   How much gift money can a qualified buyer receive from Alliance?

The maximum allowable gift by the Alliance Program is $22,500 per Participating Home.

   How much gift money can a qualified buyer receive from Alliance?

The maximum allowable gift by the Alliance 6% per Participating Home.

   How much of their own money does a homebuyer need to buy a Participating Home?

NONE.

   What makes a buyer “qualified” for a Alliance gift?

A buyer is automatically qualified for a gift from Alliance if they are purchasing a Participating Home and they are obtaining financing through and eligible loan program.

   What is a Participating Home?

A Participating Home is a home in which the Seller has entered into a Participating Home Agreement with Alliance Housing Foundation,Inc. The Participating Home Agreement outlines the contribution the Seller makes to Alliance and its use.