Many first time home buyers do not have any funds for down payment and closing costs and there are many great first time home buyer programs with zero down payment options and closing costs can be paid by the seller or rolled into the loan. But one of the biggest obstacles home buyers encounter in buying their first home is the lack of funds for the earnest or good faith deposit. The protocol when you make a purchase offer on a home is to give the seller $1,000 up front and then another installment is due within several days which usually adds up to 5% of the selling price. For example, if you were to purchase a $200,000 home, you would give the seller $1,000 when you submit the contract and then you would usually ante up another $9,000 within a couple weeks.

Many first time home buyers just don't have the money and they submit the offer with $1,000 down and that is it. The seller may reject this deal because they do not feel secure about your "good faith" or intent to purchase their home and may take another deal with more money down. You have to understand the seller's point of view. Usually, most first time buyers are doing zero down financing and now they are giving very little to the seller to negotiate a strong offer. You can have the best job, very good income, and impeccable credit and still lose the house.

But there is a solution. American Home Mortgage offers the Earnest Money Program which you can receive up to $25,000 in funds toward the good faith deposit. Just recently, I did a loan for a young couple who did not have any money to give the seller and he was going to reject the offer but I was able to secure an earnest money loan for them and the deal was accepted. Don't lose the home of your dreams because a seller did not take you seriously and contact Jerry Tribuzio, America's First Time Home Buyer Specialist, at 847.516.5743 or email jtrib@firsthomebuyers.net for more details about this unique program.