HOMEBUYER'S ASSISTANCE PROGRAM (HAP)

PURPOSE: To make buying a home more affordable by reducing the closing costs, mortgage and interest rates associated with the purchase of your home.

HOW THE PROGRAM WORKS: Closing cost contributions are available to employees of Coastal Housing Partnership members. Buyers may receive generous discounts on home inspection and lender fees, as well as credits from the real estate broker when utilizing the services of the Service Providers in our network (click on community partners that offer contributions). In addition, discounts on mortgage interest rates are now available.

Since the seller commonly pays the real estate broker commission, how does the buyer benefit?
In a typical real estate transaction, the seller pays the real estate broker a commission based upon the sales price of the property (generally 6%). The commission is usually shared between the seller’s and the buyer’s brokers. The Coastal Housing Partnership (CHP) Homebuyer’s Assistance Program allows employees of CHP member organizations to receive a percentage of the buyer’s broker commission as a credit toward their closing costs if they engage a broker of one of the Service Providers. You may obtain an updated list of the Service Providers that offer discounts from the CHP office.

ELIGIBILITY: In order to participate in the Homebuyer’s Assistance Program, you will need a Letter of Authorization from the CHP. Please inform the Service Providers you select that you are part of the CHP. Contact Corby Gavin Gage, Executive Director at 969-1025 to obtain your Letter of Authorization.

Example of Savings:

Assumptions: $600,000 home purchase price, 6% total sales commission = $36,000

Other customary buyer’s costs include loan origination fee, tax service contract, document fee, funding fee, flood certification, hazard insurance, title insurance and recording fee.

These figures are for illustration purposes only. Actual settlement costs, including CHP discounts, will vary for each transaction. Participating Organizations may be added or removed or may change their contributions at any time.