 |
|
FAMILY HOME PROVIDERS PROGRAM
Elimination of Non Profit Down Payment Assistance
On July 30, 2008, President Bush signed H.R. 3221 - Housing and Economic Recovery Act of 2008.
Section 2113 of the bill prohibits seller-funded DPA (Down Payment Assistance) for loans backed by
the Federal Housing Administration. Prior to this bill, the seller could contribute up to 6% to the buyer to
cover either a down payment or closing costs on an FHA loan. The changes are effective October 1, 2008.
Family Home Providers is a non-profit affordable housing company offering down payment assistance to
families with good work histories and appropriate credit. The terms of the Family Home Providers
program state those eligible for FHA loans may apply for 3% of the final contract price of the home.
Requirements:
- The home must appraise for the sales contract price or higher.
- Both buyer and seller must apply for the program.
- Funds must be used for the down payment.
- The seller pays closing costs.
Under the Family Home Providers down payment assistance program, out-of-pocket costs for down payment
and closing costs should be less than $1,000. Your loan officer can provide some advice on lowering
this amount if you feel the remaining expenses are too high. Some buyers may be able to re-arrange
the closing terms to help absorb some of the expenses into an FHA loan. Ask your loan officer for
further details.
Most down payment assistance programs require the seller to pay a fee. This payment is for services
rendered and is not allowed as a tax-deductible charitable contribution. Ask your loan officer for
further information if you have questions.
Additional Information:
Since this program is no longer available, we recommend that you get pre-approved for a low down payment FHA home loan.
Refinance your
FHA HOME LOAN
(No Credit Check)
|
|
|
Refinance your
FHA HOME LOAN
(No Credit Check)
FHALoan.com is a private mortgage company specializing in fha home loans and is not associated with the federal government or HUD / FHA.
-- -- -- -- -- -- -- --
FHA Foreclosed Homes
Find homes at 50% below market value. Search now for free!
Select State:
- or -
Enter Zip:
|
|
