Family Home Providers Program
Loan Assistance Programs 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 2019
Family Home Providers is a non-profit affordable housing company offering down payment assistance to any family with steady employment and good credit. Under the Family Home Providers plan, those with an FHA loan are eligible for 3% of the final contract price of the home purchased with the FHA approved loan. Under this program:
- The buyer makes an offer on an FHA qualified home.
- The home must appraise for the sales contract price (or more).
- Buyer and Seller must apply for the program.
- Funds are intended for down payments. The seller pays closing costs.
One business day before closing on the home, Family Home Providers will wire the money to the closing agent. Your loan officer can set up a homeowner's insurance policy for your new home and open an escrow account, and you can close the deal.
Under the Family Home Providers down payment assistance program, your out-of-pocket costs for the down payment and/or closing costs should be under $1,000. Talk to your loan officer if you think you need to lower this amount. The loan officer can give you advice for saving the extra money, or re-arranging the closing terms to absorb some of the additional costs into your FHA loan where permitted. You may not be able to absorb all the closing costs of an FHA mortgage, ask your loan officer what rules may apply to you.
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
December 8, 2019 - If you are planning for a new home loan in 2020, saving up early for your loan expenses can be very useful. You may not be able to anticipate every expense for the new loan, but if you buy or build a house in 2020 you’ll want to prepare for some known mortgage-related expenses.
December 3, 2019 - When applying for an FHA home loan, there are issues that can slow down the progress of your mortgage, whether you are applying for a mobile home loan or an FHA One-Time Close Construction Loan. Some may be preventable in the planning stages of your loan.
December 1, 2019 - Are you thinking about buying a home in 2020? Mortgage loan interest rates on FHA, VA, and conventional home loans were at incredible lows in 2019. Will these trends continue into the new year? While it's possible, it's not safe to assume that current rates and terms will continue.
November 30, 2019 - There are definitely ways to protect yourself in the online home loan process. The best and most obvious advice is to never respond to unsolicited communication involving a home loan. In other words, if you the customer did not initiate the conversation, it’s best not to respond.
November 24, 2019 - You cannot be legally denied housing because you have children, are a single parent, are a non-traditional couple or parent, are transgender or identify as such, or any other non-financial excuse not to provide or continue providing housing.
