Frequently Asked Questions.

8. Why would a seller be willing to pay a fee to sell their
home through Mi Casa

1. What is the Mi Casa Program?

The Mi Casa program is a non-profit down payment assistance program and a coalition of Hispanic Organizations founded by LULAC council #4601 with the primary goal of increasing minority homeownership in America, while at the same time being available to all Americans regardless of race or ethnicity. Mi Casa accomplishes this goal by providing gift funds for down payment and closing costs to homebuyers throughout the country. The funds do not need to be repaid - it is a true gift, and no lien is recorded on the home being purchased.

2. Is the program restricted to first-time buyers?

Homebuyers need to purchase a home enrolled in the Mi Casa program and obtain financing through a loan program that allows charitable organizations to provide gift funds to a buyer for use towards their down payment and/or closing costs, such as FHA.
Homebuyers should inform their real estate and mortgage professionals that they plan on utilizing Mi Casa when shopping for and prior to negotiations on their home. The real estate and mortgage professionals can then coordinate efforts to ensure the buyer will be able to participate in the Mi Casa program.

3. How much of their own money do homebuyers need?

None.

4. Is the program restricted to first-time buyers?

Homebuyers need to purchase a home enrolled in the Mi Casa program and obtain financing through a loan program that allows charitable organizations to provide gift funds to a buyer for use towards their down payment and/or closing costs, such as FHA.
Homebuyers should inform their real estate and mortgage professionals that they plan on utilizing Mi Casa when shopping for and prior to negotiations on their home. The real estate and mortgage professionals can then coordinate efforts to ensure the buyer will be able to participate in the Mi Casa program.

5. How much gift money can a buyer receive?

The maximum gift that may be received from the Mi Casa program is 6% of the contract sales price of the home being purchased.

6. What loan programs can be used with Mi Casa?

Mi Casa can be used with any single-family mortgage loan that allows charitable organizations to provide gift funds to a buyer for use towards their down payment and/or closing costs such as FHA.

7. What homes are available through the Mi Casa program?

Any residential property (single-family 1-4 units, condominiums, townhouses and manufactured/modular homes) may be purchased using the Mi Casa program as long as the seller agrees to the program participation requirements. The seller home enrollment agreement outlines the contribution a seller makes to the Mi Casa program.

8. Why would a seller be willing to pay a fee to sell their home through Mi Casa?

By participating in the program a seller can market their home to the much larger group of potential buyers that Mi Casa brings to the marketplace. Since there are more qualified buyers in the market with the help of Mi Casa, a seller has the chance of selling their home faster than one that does not participate in the Mi Casa program. In addition, sellers usually end up reducing the asking price of their homes on average 3% to 6% in order to sell. Using the Mi Casa program, sellers find that they often are able to sell their home for full asking price, and faster, due to the increased pool of potential homebuyers.

9. Isn't the seller just paying the buyers down payment?

No. Prior to recording, Mi Casa wires the buyer's gift money to the closing office. This gift comes from Mi Casa's pre-existing pool of funds. The contribution that Mi Casa receives from a seller is NOT used as down payment assistance for the buyer of that particular seller's property. The seller makes their contribution to Mi Casa only AFTER the successful closing. Mi Casa gives it own money from a pre-existing pool of funds.