| Down Payment Assistance Program |
Overview
Cohen Commercial Equity uses a program in which individuals purchasing real estate
(residential/commercial) are able to do so with little or no money down. The CFG System
helps consumers fund all or part of the down payment for the buyer. Once the closing takes
place, the seller, under the terms of the purchase contact, will pay a fee in the amount of the
funds given to the buyer plus 10% and $350.00 to CFG Servicing.
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Type of Properties:
Residential Commercial Investment
Sample Scenario
You have a $1,000,000 appraised property to work. The buyer can only qualify for 90%
financing or $900,000. Write the purchase contract at $1,000,000 to match the current
appraised value. CFG servicing will provide the income to the buyer which they can use for
their 10% down payment. Now the buyer will have $900,000 (90%) from the lender and
$100,000 (10%) from CFG Servicing for a total of $1,000,000 as required by the purchase
contract. The seller will then be responsible to pay CFG Servicing out of his or her proceeds
the $100,000 + 10% fee and $350 processing fee for a total of $110,350. The seller will then
net $889,650 not including any closing costs they may have agreed to pay.
Max Loan Amount: $5,000,000
If you still have any questions, you may call our office at (800) 928-6154 or send us an email.
info@cohencommercialequity.com
_______________________________________________________________________
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FAQS
For how long can the funds be out?
Since the funds are not sent until the loan is ready to close, the funds should come back to
us within 24-48 hours. Funds that are out longer than that will be returned, and can be
reissued when a closing is verified with the title company.
How quickly can CFG Servicing get the funds to the Buyer?
The funds can be wired as soon as we have all the required documentation.
Does the buyer have any responsibility after the loan closes?
No. The funds are repaid at closing by the seller. We are not a lender, and do not carry
loans past closing.
What happens if the loan doesn't close?
As per the buyer's and seller's contracts, the funds will be returned to CFG Servicing. There
is no further obligation, and we do not charge a fee of any kind if the loan does not close.
Doesn't the seller pay more in taxes because of the increased purchase price?
No. The amount the seller pays CFG Servicing becomes a cost of sale deduction for the
seller and reduces their taxable basis on the property.
Are the appraisal values inflated?
No. In all cases an appraisal is obtained by an independent appraiser, and an appraisal
review is usually done by the lender to insure the value. It is important to remember
however, that a key component to the use of this program is finding a home with some
equity that the seller is willing to give up in order to help facilitate the purchase.
Cohen Commercial Equity uses a program in which individuals purchasing real estate
(residential/commercial) are able to do so with little or no money down. The CFG System
helps consumers fund all or part of the down payment for the buyer. Once the closing takes
place, the seller, under the terms of the purchase contact, will pay a fee in the amount of the
funds given to the buyer plus 10% and $350.00 to CFG Servicing.
______________________________________________________________________
Type of Properties:
Residential Commercial Investment
Sample Scenario
You have a $1,000,000 appraised property to work. The buyer can only qualify for 90%
financing or $900,000. Write the purchase contract at $1,000,000 to match the current
appraised value. CFG servicing will provide the income to the buyer which they can use for
their 10% down payment. Now the buyer will have $900,000 (90%) from the lender and
$100,000 (10%) from CFG Servicing for a total of $1,000,000 as required by the purchase
contract. The seller will then be responsible to pay CFG Servicing out of his or her proceeds
the $100,000 + 10% fee and $350 processing fee for a total of $110,350. The seller will then
net $889,650 not including any closing costs they may have agreed to pay.
Max Loan Amount: $5,000,000
If you still have any questions, you may call our office at (800) 928-6154 or send us an email.
info@cohencommercialequity.com
_______________________________________________________________________
__________________________________________________
FAQS
For how long can the funds be out?
Since the funds are not sent until the loan is ready to close, the funds should come back to
us within 24-48 hours. Funds that are out longer than that will be returned, and can be
reissued when a closing is verified with the title company.
How quickly can CFG Servicing get the funds to the Buyer?
The funds can be wired as soon as we have all the required documentation.
Does the buyer have any responsibility after the loan closes?
No. The funds are repaid at closing by the seller. We are not a lender, and do not carry
loans past closing.
What happens if the loan doesn't close?
As per the buyer's and seller's contracts, the funds will be returned to CFG Servicing. There
is no further obligation, and we do not charge a fee of any kind if the loan does not close.
Doesn't the seller pay more in taxes because of the increased purchase price?
No. The amount the seller pays CFG Servicing becomes a cost of sale deduction for the
seller and reduces their taxable basis on the property.
Are the appraisal values inflated?
No. In all cases an appraisal is obtained by an independent appraiser, and an appraisal
review is usually done by the lender to insure the value. It is important to remember
however, that a key component to the use of this program is finding a home with some
equity that the seller is willing to give up in order to help facilitate the purchase.
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Step-By-Step
The CFG System has been put together for you in a step-by-step process in order to
eliminate any confusion.
Here are the steps:
1. First you must have a buyer who doesn’t have the funds required for the down payment
and/or closing costs.
2. Once you have completed the loan approval process and the lender has sent docs out
to the closing agent, you or the closing agent will call us and let us know the exact amount
that the buyer is short to close.
3. The buyer and seller will sign agreements allowing them to use and join our program.
Once the signed agreements are back, the funds will be released immediately to the buyer
so they will have the exact funds needed to close.
4. Seller will return funds at time of close plus 10% and $350.00 as per the agreement of
program.
For specific situations, details, or more information please call us toll free at
(800)928-6154. We are open Monday through Friday 9:00am to 5:00pm PST.
The CFG System has been put together for you in a step-by-step process in order to
eliminate any confusion.
Here are the steps:
1. First you must have a buyer who doesn’t have the funds required for the down payment
and/or closing costs.
2. Once you have completed the loan approval process and the lender has sent docs out
to the closing agent, you or the closing agent will call us and let us know the exact amount
that the buyer is short to close.
3. The buyer and seller will sign agreements allowing them to use and join our program.
Once the signed agreements are back, the funds will be released immediately to the buyer
so they will have the exact funds needed to close.
4. Seller will return funds at time of close plus 10% and $350.00 as per the agreement of
program.
For specific situations, details, or more information please call us toll free at
(800)928-6154. We are open Monday through Friday 9:00am to 5:00pm PST.
| Short Funds to Close? Receive Funds Today. Call Now and Find out How: 1-800-928-6154 |
| Get up to 20%towards downpayment call 1-800-928-6154 |
