On July 30, 2008, President Bush signed the Housing and Economic Recovery Act of 2008 which prohibits seller-funded down payment assistance. Historical program information is only provided for reference on this website. These grants are no longer available.

FHA Loan Rates

April 20, 2015
FHA Rates for April 20, 2015
30 Year Fixed
3.5% Rate
3.74% APR
15 Year Fixed
2.75% Rate
3.0% APR
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American Family Funds

Loan Assistance Program Canceled in 2008

Elimination of Non Profit Down Payment Assistance: On July 30, 2008, President Bush signed the Housing and Economic Recovery Act of 2008 which 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 took effect on Oct. 1, 2008. We provide this information for reference only. These grants are no longer available.

American Family Funds (AFF) administers The Dove Foundation, a non-profit charity offering down payment and/or closing cost assistance to qualified American home buyers. The program features:

  • A simple application completed by your loan officer.
  • No credit check.
  • No income requirements.
  • No limit on the amount of down payment assistance and/or closing costs.

Once you are pre-qualified for the FHA loan and find a property you want to buy, notify your loan officer, who will apply for the AFF down payment assistance on your behalf. Make an offer on the home that includes use of the AFF program.

  • The seller must accept the terms of your offer.
  • AFF provides the down payment money at the time of settlement.
  • The money is applied to your down payment and/or closing costs.
  • Typical down payments range between 3% and 6% of the contract price of a house, but individual terms may vary.

Ask your loan officer for details on American Family Funds, down payment assistance programs, or how to make an offer contingent on the use of the AFF program if you aren't sure how to proceed. AFF is only one of a wide variety of down payment assistance plans, be sure to explore all your options and find the program that meets your needs.

Down payment assistance programs generally require the seller to pay a fee to participate. This fee is considered a payment for services rendered and not a tax-deductible charitable contribution.

Since this program is no longer available, we recommend that you get pre-approved for a low down payment FHA home loan.

Discontinued Down Payment Grant Programs:

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FHA Loan Articles

Read About Mortgage News, FHA Updates, and Guidelines
FHA Loans With Non-Occupying Co-borrowers

One common question asked by some potential FHA loan applicants has a lot to do with who will sign or co-sign the loan documents. FHA loan rules permit non-occupying co-borrowers and co-signers, but depending on the nature of the transaction the loan amount could be affected.

FHA Adjustable Rate Mortgages

Borrowers applying for FHA home loans do so to get new purchase home loans, refinance loans, and Home Equity Conversion Mortgage loans. Did you know you can apply for new purchase or refinance FHA loans that come with adjustable interest rates?

FHA Loans: Fact vs. Fiction

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FHA/HUD Update Equal Access Policy

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FHA Loans and Tax Liens

In dealing with a borrower with an expired tax lien, an FHA lender is required to do a computer check of public records to see if the borrower owes any money on federal debt.  If debt or delinquency exists, elibility for an FHA loan may not be available.