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Zero Down Program
If you qualify for a mortgage but are still lacking the funds to meet the minimum down payment the HART program may interest you. First the seller must participate in the program for buyer to receive the Hart funds and help support future homebuyers. The seller makes a contribution to the HART program after closing. The Amount of the funds from seller is equal to the amount gifted plus the HART processing fee. The contribution made to the HART Program is not a charitable income tax deduction. The HART funds will be gifted to the buyers down payment of an owner occupied property.
Chain of events
The buyers agent retains seller participation and prepares the purchase agreement.
The agreement shall be written to include the clause “ Buyer and seller agree to participate in the HART Program. The seller agrees to give $ (XXX) to the Hart program.”
The Sellers amount will equal to what the buyer’s HART Gift will be plus a processing fee.
The purchase agreement is fully executed and a loan originator will complete the process.
A loan originator will crunch the numbers and determine loan costs.
Loan originator then request letter of gift funds from HART.
The HART processing department reviews the request and sends the gift letter to the loan originator.
Upon receiving the letter the loan originator contacts the settlement agent.
The settlement agent then sends the estimated closing statement to HART funding department.
Sellers non-income tax deductible contribution is sent to HART after the final closing of the transactions.
