AmeriDream Program
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
AmeriDream is a non-profit organization dedicated to helping people find affordable housing. Part of the AmeriDream mission is to help low and moderate income families buy homes by offering down payment assistance. Buyers who are qualified for an FHA loan but don't have the money for down payment and/or closing costs are eligible to apply for AmeriDream down payment assistance:
- A down payment gift of up to 10% (typically 3%-6%) of the purchase price.
- A true gift-the down payment assistance is not repaid by the home buyer
- Home buyer must have an approved FHA home loan or pre-approved FHA loan.
To participate in the AmeriDream down payment assistance program, buyers should;
- Get pre-approved for an FHA mortgage and start looking for a home.
- Make an offer on the home you want to buy and get a ratified contract.
- Your loan officer applies for the AmeriDream down payment assistance program on your behalf.
- You will receive a "Notice of Gift Approval" from AmeriDream.
- Close the deal on your new home.
The seller must participate in the AmeriDream program, but your loan officer can assist a seller in signing up for the program by showing where and how to apply. For your home buying needs, the loan officer will handle your application for AmeriDream down payment assistance, but may require additional information from you to help fill out the form.
AmeriDream is just one of many organizations offering down payment assistance to those with FHA approved home loans. If you have been pre-approved for an FHA mortgage loan but don't meet the income requirements for the AmeriDream program, keep looking. There are several down payment assistance programs with no income requirements or restrictions.
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
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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.
