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

July 22, 2014
30 Year Fixed
3.95% Rate
3.96% APR
15 Year Fixed
3.0% Rate
3.29% APR

Prequalify Now!

Compare mortgage rates for your refinance or home purchase loan.

CHOOSE A LOAN TYPE

then
get
your

FREE CREDIT SCORE

Do you know what's on
your credit report?
FHA.com is a private company, is not a government agency, and does not make loans.

Newsong Program

Loan Assistance Programs Canceled in 2008

More FHA Loan Information:

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.

Newsong provides a down payment assistance program for residential and commercial properties. This program offers a one-time gift for all closing costs, and there are no income requirements or limits on who can participate. Anyone who qualifies for an FHA loan can apply to receive down payment help from Newsong. The program does not require inspections or credit checks, and there are no restrictions on where you wish to buy your home as long as it is within the "geographic United States". The program offers:

  • No "first time homebuyer" restrictions-this program is for anyone buying a home with a pre-approved FHA loan or an existing FHA loan.
  • Up to $25,000 for closing costs for a home purchased with an FHA loan.
  • More funds available on a case-by-case basis-your loan officer will provide more information if you need to request additional assistance.
  • Gift funds made available 24 hours after approval.

If you are approved for an FHA loan and want to participate in the Newsong program, take the following steps:

  • Find a home and make an offer.
  • Once the offer is approved, contact your loan officer and ask about the Newsong program.
  • Tell your realtor you want to buy the home using the Newsong program
  • Your loan officer applies to Newsong on your behalf.
  • Money is available up to 24 hours after the application is approved.

In many cases same-day approval is possible if your loan officer can complete and send the paperwork before noon. The seller must participate in the Newsong program. Ask your loan officer and/or realtor how your seller should sign up for Newsong.

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:

RHO

FHA Loan Articles

Read About Mortgage News, FHA Updates, and Guidelines
FHA Home Loans for Single Parents

There’s a type of common question about FHA home loans that involves whether there’s any special help for some FHA loan applicants such as single parents. Is there any assistance for people who need down payment help or lower mortgage payments?

FHA Changes Electronic Signatures Policy

The FHA has announced it would accept electronic signatures (also known as e-signatures) on several FHA home loan documents. The new policies are found in detail described in FHA Mortgagee Letter 14-03.

FHA Reverse Mortgage Basics

The FHA Reverse Mortgage, also known as Home Equity Conversion Mortgages or HECM loans, is designed for those aged 62 and older who own their home outright or have few payments left on the mortgage.

Is There a 'No Credit Check' FHA Loan?

One type of question that sometimes arises about FHA loans-- Is there a no-credit-check version of an FHA mortgage loan? What is the criteria required for FHA loans that do not require a credit check and/or appraisal?

FHA Issues New Guidelines on Reverse Mortgages

The FHA has published updates to the rules that affect how FHA Reverse Mortgages or Home Equity Conversion Mortgages are processed. Lenders must perform a financial assessment of all prospective mortgagors on all HECM transaction types.