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Frequently Asked Questions
How much gift money can a qualified buyer receive from Genesis?
The maximum allowable gift by the Genesis Program is $22,500 per Participating Home.
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How much of their own money does a homebuyer need to buy a Participating Home?
NONE.
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What makes a buyer “qualified” for a Genesis gift?
A buyer is automatically qualified for a gift from Genesis if
they are purchasing a
Participating Home and they are obtaining financing through and
eligible loan program.
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What is a Participating Home?
A Participating Home is a home in which the Seller has entered
into a Participating Home Agreement with Genesis Housing Development
Corp. The Participating Home Agreement outlines the contribution
the Seller makes to Genesis and its use.
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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 Genesis)
as an acceptable source of borrowers “Funds to Close”
(HUD Handbook 4155.1, Rev-4, Chg-1, Para. 2-10C).
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Isn’t the seller just paying the buyers down payment?
NO! Prior to recording, Genesis wires the buyer’s gift money
to the closing office. This gift comes from Genesis’ pre-existing
pool of funds. The contribution that Genesis 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 Genesis only AFTER the successful closing. Genesis gifts its
own money from a pre-existing fund.
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Are Participating Homes overpriced to accommodate the additional
fees?
NO. A Genesis 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.
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How does the seller benefit by using the Genesis program?
By using the Genesis Program a seller can market their home to
a much larger group of prospective buyers than a home that does
not utilize the Genesis 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 Genesis
Program can bridge this gap.
In essence, the Genesis Program helps bring buyers to the marketplace.
Since there are more qualified buyers in the market with the help
of Genesis, a Genesis participating home has the chance of selling
faster that a non-Genesis home. More buyers also helps to maintain,
if not increase, property values.
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How much does a seller contribute to Genesis?
Genesis receives a contribution equal to the Gift Amount that Genesis provided to the home buyer plus
(1% of the contract sales price or $750, whichever is less). A
seller makes a contribution ONLY if the home is sold utilizing
a gift from Genesis.
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What steps are involved in a Closing Transaction?
- Lender sends closing documents and Gift Funds Request to Closing
Office.
- Real Estate Agent or Seller provide Closing Office with Participating
Home Agreement.
- Closing Office requests Gift Funds from Genesis.
- Genesis reviews settlement statement and wires Gift Funds
to Closing Office.
- Closing occurs efficiently and with no surprises!
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