Written By: Glenn Michaels, Op-Ed Writer
Mortgage lenders may see an increase in employer gifts/grants in the coming months if www.homegrants.com has its way.
The agencies, Fannie Mae, Freddie Mac and HUD/FHA all allow employers to give a gift to retain or to attract new employees in buying a home. The web site www.homegrants.com limits the gift to no more than $10,000.00. In some states $10,000.00 is adequate to assist the average borrower to close on their home. In other states the $10,000.00 will help but not be adequate to close on a loan.
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The web site organizes the process for the borrower and the employee and all necessary documentation is issued according to the respective agency so the loan file is in full compliance with the agency.
The concept put forward by www.homegrants.com is quite simple. Corporations all over make sizable donations for tax write-offs. Now the same corporation is being asked to take a portion of their donations and make a donation to the web site’s not for profit corporation in the name of the corporation’s employees. The corporation sets the number of years an employee must have been employed with the corporation to be eligible for the gift. In addition many corporations may want to recruit new employees and could use this as a new tool to recruit new employees. Now the corporation still gets the same tax write off but their employees receive a new employee benefit. The gift funds are places in a major money center bank in a trust fund that is administered by www.homegrants.com
The employee that applies for a mortgage with a lender must be issued a mortgage loan commitment from a lender subject to evidence of the employer gift/grant. The web site does not approve any applicant for a mortgage.
As a condition to obtaining the gift the employee must enroll in several courses administered by www.homegrants.com such as budgeting their money and how to handle their credit and more.
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Now the new home owner will be a wiser home owner and have a better handle on home ownership. It is believed that a first time home owner with education about home ownership will be a better homeowner.
Now if you or if you know someone wanting to buy a home and they need additional funds to close on their home and they have a willing employer to make a donation to the web site’s 501C corporation (not for profit designation by the United States Internal Revenue Service) the employees of the corporation now will have a new employee benefit to assist the company’s employees to buy a home.
About The Author
Glenn Michaels - As an op-ed writer, Glenn Michaels is a mortgage underwriting instructor for CampusUnderwriter (www.MortgageUnderwriter.org). As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years.
