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 2017
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:
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.
