First-Time Homebuyers Program

(First Time Buyer = You haven't owned a home in the last 3 years personally, through a spouse, or through an entity/trust/estate/etc that you own.)

We're big believers in homeownership. It’s a powerful way to impact your financial and personal future. It’s part of the American Dream.

Unfortunately, achieving that part of the dream has gotten tougher over recent years. Home prices are up. Interest rates are up. Lending restrictions are tighter after 2008. Investors are buying up single-family housing at record levels. We want to be a part of the solution. While we can’t change the market conditions or the law, we can do our part to lower the barrier to entry.

The recent trend in the real estate industry has been monetization. Grow your volume of business, and then use that scale to bring in advertising revenue or profit sharing from the other vendors you do business with. There’s nothing unethical about this strategy, so long as it’s done above board and disclosed properly. However, as we’ve grown, we’ve decided to ask our trusted business partners to give money to our first-time buyers instead.

Just like that, our First Time Homebuyers Program was born. I know it’s not a creative name. We name our house plans by their square footage and the most obvious two words available (“The 1198 Skinny Ranch”). We named our family building company Family Building Company. We just like things to be simple and clear.

We believe this program is the first of its kind from a home builder. We hope it's far from the last and we hope that it can make a difference.

First Time Homebuyers purchasing from Family Building Co. receive:

1% Closing Cost Credit

Paid for by Family Building Co.

.5% Closing Cost Credit

Paid for by Colin Tommerson at Fairway Mortgage #806

.5% Closing Cost Credit

Paid for by the listing-side real estate broker (our agent)

$200 Closing Cost Credit

Paid for by Mann, McGibney & Jordan Law

No-Cost Survey

Provided by Family Building Co. An as-built survey showing lot dimensions, information, and house placement.

Discounted Title Policy

Purchase a lower-cost reissue policy on our recent title insurance.

Add the extras!

In addition to all of the above, our First Time Homebuyers will be able to add a refrigerator, washer, dryer, and whole-home blinds to your purchase so they don't have to be purchased out-of-pocket or on credit post-closing.

For instance, on a $250,000 home, you could add:

a $1500 refrigerator
a $1200 washer/dryer set, and
a $1200 whole-house blinds installation

and the new purchase price would be $253,900.

Please note, for the sake of transparency, that these are at-cost add-ons and the total price to add these items will include tax, delivery, and installation/setup, but will not include any additional company profits to Family Building Company.

FAQ

Who is eligible for the First-Time Homebuyers Program?

For the purposes of this program, a First-Time Homebuyer is basically somebody who doesn't own a home, and hasn't for a little while, looking to become a homeowner again. Technically speaking, this is someone who has not owned a home for the past 3 years either personally or through a spouse, business, trust, estate, etc.

What is the total value of this Program?

It changes from home to home depending on the sales price and a few other factors. It provides 2% +$200 in closing cost credits, $800 or so in savings on the provided survey, and some difficult-to-determine-but-real amount on the title insurance. Plus, it allows you to incorporate some common first-home expenses into the purchase price - while not a direct savings, it may be an option to consider if you have limited cash available.

What if the house doesn't appraise for the price increase covering my appliances?

That would be a pretty rare phenomenon, since the price difference is fairly minimal by appraisal standards. If that were to happen, we'd have to review the appraisal and the circumstances and work with you, your lender, and your agent on a case-by-case basis to figure out the best way to proceed.

Do I have to use your preferred lender?

No - you're free to buy a Family Building Company home and work with any lender you choose. However, to be eligible for the First Time Homebuyers Program, you must, at minimum, go through the pre-approval program with Colin Tommerson of Fairway Mortgage. After reviewing the loan terms provided by Colin, you can decide to work with his team and receive his lender portion of the closing cost credits (.5%) or use a different lender with whatever terms and credits they provide.

Why?

A few reasons.

For one, not all lenders use the terms "pre-qualified" and "pre-approved" to mean the same things. There are internet-based lenders, as well as local ones in any market, that will issue you a pre-qualification letter based on your credit score and how much you tell them you earn. We want to be sure that we're signing a purchase agreement with a buyer who is prepared to close, and Colin and his team are thorough, knowledgeable, and solutions-oriented. A thumbs-up from Colin tells us that you will be able to close the sale, rather than a might or should.

Second, Colin and team are good human beings. You deserve to hear their analysis and feedback. They want things to work out to be the best for you, are highly ethical, and will shoot straight with you if there are challenges that need overcoming.

Finally, their pricing is amazing. Many builders and top real estate agents tout that their "preferred lender" will pay a $XX credit for using them. Any lender will also tell you they can match or beat those "preferred lender" offers - because they're not special values typically. There is a mechanism by which lenders can charge a fee (discount points) to lower your interest rate, or provide a credit and increase your interest rate. Most lender credits are simply a function of the interest rate you end up with.

Colin has committed to us to provide a true credit. Stated otherwise, the interest rate you're quoted will be an at-market interest rate with an assumption of receiving no credits and paying no discount points, and then he will provide a real credit that reduces both his earnings and your costs on the transaction.

Do I have to use your preferred attorney?

Yes. MMJ Law isn't just our preferred attorney, they are our only closing attorney. Not only are they good human beings with quality service and fair pricing, but closing transactions at multiple different law offices is very challenging - it's hard to keep up with the paperwork and communication. For that reason, we will only close a sale with MMJ Law - whether you're part of this program or not.

What does Family Building Company get from this program?

Not money, not favors or IOU's, and nothing of any tangible value. This program may help us to sell a home faster than a similar home nearby that doesn't have an offering like this put together. It definitely makes our job easier to get from contract to closing when we already know and trust the lender and attorney. And we get a great sense of satisfaction. Our vendor partners, staff, investors, and agents are all very proud when we close a sale to a first-time homebuyer that was made possible by our collective effort.