Continental Home Loans has created a $1,000 down payment loan and is publicizing the workings of their month-old program.
That’s because the design of the loan can be complicated, with participating sellers funneling down payment for the buyer through a nonprofit and businesses, from title search companies to attorneys, cutting fees, as a Newsday story today details.
But Mike McHugh, head of the Melville lender, wants to make it clear that it’s all legitimate, with full-documentation loans backed by the Federal Housing Administration -- not a return to the “smoke and mirror” creative financing that cause the subprime collapse last year.
That’s why the lender has bought ads in legitimate media to market the $1,000 and scheduled several public seminars in legitimate places.
Company officials will be at the Huntington Hilton in Melville from 10 a.m. to noon Saturday and 7 to 9 p.m. Jan. 24. Plus, they’ll hold another seminar from 7 to 9 p.m. Tuesday at the Islandia Marriott and 7-9 p.m. Wednesday at the The Chateaubriand in Westbury.
Potential buyers can fill out applications there and are encouraged to bring their pay stubs and other documents. Continental promises to approve or deny loans within two working days.
Continental has set up www.SmarterRealEstateSolutions.org, expected to be turned on Friday for the public. It will show houses whose sellers have agreed to participate in the program, as well as a list of real estate agencies and other businesses that signed up for the program.