The Housing Action Resource Trust
Loan Assistance Programs Canceled in 2008
Elimination of Nonprofit 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.
NEW: Down Payment Assistance Programs for 2024
The Housing Action Resource Trust or HART program is a non-profit housing organization offering help to homebuyers who qualify for FHA "first mortgage" loans. A first mortgage does not mean "first-time homebuyers only," but rather those who are getting the initial mortgage and not applying for a second mortgage or home equity loan.
Those who have pre-approval for an FHA loan or have an approved FHA loan qualify for HART. This program is aimed at those who have the right credit and employment to qualify for an FHA loan but lack the money for a down payment and/or closing costs. To use the Housing Action Resource Trust:
- Get an FHA-approved loan or pre-approval on an FHA loan.
- Find a house and make an offer.
- Tell your realtor you want to buy the home using the Housing Action Resource Trust program
- Contact your loan officer, who applies to the HART program on your behalf.
As with other down payment assistance programs, the seller must agree to participate in the HART program. Your loan officer will let you know when funds are scheduled to be transferred in your name for the down payment and/or closing costs.
If your seller has not signed up for the HART program but is willing to participate, ask your loan officer and/or realtor for details on how the seller may register with the House Action Resource Trust.
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 and Mortgage News
May 16, 2024 - You’ve saved your down payment funds, researched the housing market, and worked on your credit. When you apply to be pre-approved or prequalified for an FHA mortgage, there are a few things to review before you start filling out the forms.
May 12, 2024 - The FHA and HUD have revised appraisal rules for FHA single-family loans. The revisions are meant to address issues including housing discrimination at the appraisal level, and provide home buyers with clarified guidelines to contest an appraisal or request a reconsideration of value (ROV).
May 11, 2024 - FHA home loans are just one way to buy a home. Some borrowers pay in cash, some use conventional mortgages, and some qualify for VA home loans. But what do all of these have in common in many cases? The need to use home loan earnest money as part of the transaction.
May 10, 2024 - Which services are required for FHA loans, and which ones are optional? Some borrowers ask this in the planning stages because they’re trying to find ways to stretch their home loan budgets for closing costs and the down payment. We examine some critical services in this article.
May 8, 2024 - You cannot make a down payment or pay closing costs with cold, hard cash. You must render payment in the manner acceptable to the lender, which is typically a wire transfer or some other pre-arranged procedure for down payment money.
