Quote:
Originally Posted by Cowboy89
It's only a 'gift' if house prices decrease, even so the treatment of a 'forgivable' loan means you still pay interest on that factored into your mortgage price. As you probably already know appreciation on the value of your property will be split.
Is saving $22K really that unreasonable to expect of someone to become a homeowner?
|
What interest are you talking about? There is no additional interest costs for the forgivable loan.
AHCC gets their money back through money they get back on appreciation. The amount they get of the appreciated value decreases from 100% if sold in the first year to 25% at 3years+.
If the sale price is less than my purchase price I only have to give them $10k when I sell.
As for $22k being unreasonable I'm not the one who said it, numerous others have said it in this thread that it was hard. One of the biggest factors in preventing home ownership is that people can't save up that down payment.