GET YOUR OWN HOME -- AND PROFIT FROM SHOWING OTHERS HOW What may be the most fantastic government giveaway ever began in late March, 1995. The Clinton administration expanded the "203k" mortgage program -- formerly a small remodeling loan program -- and turned it into a program that gives: * First-time home buyers the ability to acquire a house with no down payment. * Nonfirst-time home buyers the ability to finance a dwelling that's bigger than the current appraised value of the property. For example, you might have an "as-is" appraised value of $100,000 and walk away with a mortgage of $120,000. * Investors the right to stack the full costs of renovating a fixer-upper property on top of the regular acquisition costs of the house -- all for a 15% down payment that the investor can get back with substantial profits in a matter of months. The 203k program allows borrowers to combine the as-is price of the property and the cost of the future renovations into one loan at the time of the purchase. Then it extends highly favorable FHA down-payment terms to the entire package. Though that frequently can mean a down payment of just 5 percent, the new 203k program takes the low down payment concept a step further. For what the government defines as "first-time buyers," the required down payment can go to zero. First-timer for 203k, doesn't necessarily mean you've never owned a house before. Rather, you simply cannot have owned a home during the three years immediately preceding your 203k loan application. And if you've been divorced or separated less than three years, you qualify as a first-timer as long as you no longer have an ownership interest in a home. For small real-estate investors there are also great deals to be had. For example, a small-scale investor or renovator locates a rundown townhouse needing $20,000 worth of repairs. The as-is, unrestored price of the place is $70,000. Total acquisition costs are projected at $90,000. The investor puts down 15% ($13,500). If the investor were going to retain the property for rental, a $76,000 loan ($90,000 less $13,500) would be the maximum mortgage allowed under the program. However, if the investor planned to sell the renovated house to a first-time buyer, the loan ceiling could be considerably higher. Let's say an FHA- approved appraiser estimates that after renovations, the home would have a resale value of $125,000. Using what FHA calls the "escrow commitment procedure," the investor could then qualify for a maximum loan of $119,250. After completion of the renovation, the investor would allow a first-time buyer to take over (assume) the $119,250 loan for a no-cash down payment. The investor could either waive the $5,750 down payment altogether or take back a second mortgage note. The buyer, of course, would have to qualify financially to handle payments on that size mortgage debt. At closing, from the $125,000 sale price the investor would get the $13,500 he or she originally put down, plus a "profit" of $29,250 (the difference between the $119,250 ultimate loan amount and the $90,000 acquisition and renovation costs)! A national company is now making deals using the 203k program guarantees to secure the financing. They will arrange financing anywhere in the country. And even better, you can become an independent contractor promoting their program, receiving commissions for showing others how to get their house financed for an out-of-pocket cost equal to the closing costs. (Your own house could be your first deal, thus applying your commission to the package.) No real estate or mortgage banking license is required to sell the program, so this has potential for everyone. You can also earn an override commission on the sales of other sales people that you recruit. To make this most profitable, you'd probably want to divide your time between selling directly to homeowners and recruiting others. You could do especially well by concentrating your efforts on signing up real estate salespeople in your area, since they already have lots of contacts with people who can't get financing for the homes they want. The program provides homes to renters with nothing down. The total amount required is an amount equal to just their closing costs. This amount is usually not much more than a landlord would require with first and last months rent with a security deposit. This market is potentially 8 times larger than the market whose buyers have a down payment available, which should provide enough prospects to keep you busy for awhile. The program also includes assistance for those with poor credit, up to and including bankruptcy. To get more information on the marketing program, including an application form to become an independent contractor selling the program to homebuyers, send $2 for postage & handling to: Atlas Financial Services Group, Attn: Mortgage Program, 822 Guilford Avenue, #119, Baltimore MD 21202. Please understand that the information you will receive is on the specific program being offered -- it is not generic information on the 203k program. Just think for a moment what your response would be if you ran a simple ad in the "homes for rent" section of the newspaper, perhaps reading "Tired of renting - no down required - learn how to own your home free and clear in approximately 10 years with no more than you would have spent in rent during the same period." One new client from this ad will pay you $500 (based on a purchase price of $100,000) and this could be earned on your first day. Is there anyone you know who would want to continue renting if they learned they can buy their own home free and clear in approximately 10 years and it will cost them so little to buy? If they can afford to rent, they can afford to own.