HOME FIRST TIME
BUYERS HOME

The owners have decided to sell these units, direct to the Public, without the use of a RE Broker, and have decided to concentrate on sales to First Time Buyers (FTB’s), and have put into place exclusive financing through our reputable New Hampshire lender to accomplish this end. Please understand that, this does not mean that we will not sell these units to other than FTB’s. It does mean that, any financing opportunities quoted on this website WILL NOT be applicable to anyone other than FTB’s.

These units will be sold at the prices listed. Because there are no RE Broker’s involved, there will be no typical “offer/counteroffer” situations here. We expect that there will be many more prospective Buyers than we have units for. And because the units will never be sold for more than the listed prices, there will be no “bidding wars” (where the price of the unit gets “bid up” until the winning buyer is determined). Because of these limiting circumstances, the priority of the prospective Buyers will be determined by the first prospects who get pre-approved through our reputable New Hampshire lender.

All of our condos will sell for between $169,800 and $179,800. Therefore, if you wish to have an opportunity to purchase ANY of these units, we would suggest that you get pre-qualified for one of the $179,800 units.

The “Plan” is to use this website to recruit prospective Buyers which we will ask to get “pre-approved” through our reputable New Hampshire lender. Once the prospect has a “pre-approval letter” we will schedule a showing with this prospect. Date stamp on the lenders pre-approval email will determine the priority of the Buyers. If the prospect decides that they want the unit, they will then sign a Purchase and Sale Agreement with us, which will be the foundation for the final mortgage processing through our reputable New Hampshire lender.

Using this program for your financing means that you will need to come up with between $5100 - $5400 as a down payment on your new home (depending on the purchase price). The source of this down payment can be quite flexible, however. This can either be from your own savings or potentially as a gift from any individual who’s related to you by blood, marriage, domestic partnership, adoption, or legal guardianship. That includes relatives (of the borrower or domestic partner), former relatives, godparents, spouses, individuals engaged to marry the borrower, children, or other dependents.

Additionally, closing costs (loan fees, appraisal costs, title insurance, attorney and closing costs, tax stamps, etc.) can often times add up to an additional 3% of the purchase price. The Sellers (owners of FTBcondos.com) will rebate 6% of the purchase price to the Buyers at closing to cover these closing costs. Because the 6% rebate is approximately twice the amount of the estimated closing costs, the additional 3% will go to fund your “prepaid escrows” (RE Tax escrow, PMI escrow, Homeowner Insurance escrow, etc.), which means that SEVERAL YEARS of your RE Taxes and Homeowner Insurance bills will be pre-funded ahead of time and effectively means that the Buyers will effectively take ownership of these units with NO “SKIN” IN THE GAME, because the 3% DOWNPAYMENT and 3% PREFUNDED ESCROWS (provided by FTBcondos) will “WASH”.

$1000 of this $5100-$5400 down payment will be required to be put down upon signing the P+S (after Pre-Approval through the lender).
The balance of the downpayment ($4100-$4400) will not be required until the date of closing (but will be verified by our reputable New Hampshire lender s as part of the mortgage underwriting process).

The MCC (Mortgage Credit Certificate) will be secured for you by our reputable New Hampshire lender as part of the closing process. The MCC is a refundable tax credit (meaning that you will get this back even if you do not pay any taxes for the previous year). The MCC allows you to “write off” up to 35% of your INTEREST cost for the previous year, not to exceed $2000/year. Based upon amortization of a $164,706 mortgage over 30 years at 6.25%, you will be able to claim this $2000 credit in full for the first 15 years of your mortgage. After the 15th year, this credit will gradually diminish over the balance of your mortgage ($1800 in year 16, $1500 in year 17, etc.)

The net reduction of principal is the second component of the Net Monthly Payment. When you first start paying your mortgage, the vast majority of the initial payments will be applied to interest cost, but a small amount will also be credited as principal reduction. For example, for a $164,706 loan at 6.25%, the initial $1014 monthly payment will be allocated to $846 towards INTEREST and $168 towards PRINCIPAL. Effectively, this part of the mortgage is going to be “paid back to yourself” and, as an added bonus, this “principal reduction” will increase by $1-$2/month for the remainder of the mortgage.

Generally, we are looking for prospects with FICO scores of 660-680 or greater, and with two years of steady employment/income. And, if you are a couple, as long as ONE of the buyers has not owned a home in the past 3 years (lender’s definition of a “First Time Buyer”), you will likely qualify for one of these mortgages under their “First Time Buyer” program.

The only differences between “renting costs” vs the “ownership costs” cited above, are the water/sewer and heating costs. The water/sewer bill will add $26/month to the above figures and you should likely budget between $50-$60/month for heat.

This will involve some effort and some upfront costs, but the “rule of thumb” is that if rates decline more than 1-1.5%, it would be worthwhile to consider a re-finance of your loan through our reputable New Hampshire lender. As an example, if the rates were to decrease 1.5% (from the 6.25 quoted above to 4.75%) the P+I payment on the above specified monthly costs would decrease from $1014/month to $859/month, a savings of $155/month.

Additionally, because of the lower rate, not only will the total monthly payment go down, the amount paid every month in interest will also go down, meaning that the amount applied to principal reduction in the above scenario will increase from $156/mo to $207/mo. Here is an overview of how a (speculative) 1.5% reduction in the interest rate would affect the Net Monthly Payment