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
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.
July 3, 2017 - Do you know what major differences exist between FHA loans and conventional loans? After learning about some features of an FHA mortgage, many undecided borrowers wind up choosing FHA mortgages over conventional loans.
July 1, 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.
June 21, 2017 - FHA loan rules permit owner-occupiers to buy multi-unit properties and rent out the unused living units. Can the borrower convince a participating lender to factor in potential rental income and include it as part of the applicant’s debt-to-income ratio?
June 15, 2017 - How long does the FHA require an applicant to be on the job before he or she is eligible to apply for a loan? There are sometimes misconceptions about these requirements on a basic level, and there are important questions that some may worry about going into the FHA loan application.
