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.
NEW: Down Payment Assistance Programs for 2017
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:
FHA Loan Articles and Mortgage News
September 3, 2017 - There are many different types of FHA loans available for borrowers who want more options than a typical suburban home. Many types of properties may be purchased with an FHA insured mortgage, including manufactured homes, multi-family units, and condominiums.
August 12, 2017 - If you have never heard of an FHA Jumbo Loan, you’ll be interested to learn that this is a mortgage which exceed the county limit for mortgages in a given zip code. You may be eligible to apply for an FHA home loan in excess of FHA loan limits, but there are things to understand before you apply.
July 19, 2017 - The 203(K) Rehab loan is the FHA's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.
July 12, 2017 - FHA loan rules for the single-family loan program are designed for owner-occupiers, but depending on circumstances a borrower may be approved by a participating lender to buy another home--usually in response to a pragmatic need like a larger family or job requirements.
July 7, 2017 - Are there major differences between FHA loans and conventional loans? Why do borrowers choose FHA mortgages over conventional loans? A participating FHA lender can offer qualified borrowers lower interest rates, early payoffs without a penalty, and more.
