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 2020
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
March 16, 2020 - It’s easy to assume that a rate cut automatically equals a lower mortgage loan interest rate. But that is far from accurate and what the Fed did in cutting interest rates down to the zero range does NOT automatically translate into a lower home loan interest rate for you.
March 15, 2020 - There are times when mortgage rates are low, and there are times when rates fall so very low that even those in the lending industry contemplate their refinance loan options. Now is one of those times. It's a milestone well worth paying attention to.
March 12, 2020 - At the time of this writing, in the second week of March 2020, mortgage loan interest rates have taken a sharp turn upwards after hitting lows not seen in recent memory. FHA mortgage loan interest rates were, for a time, below the three percent zone.
March 10, 2020 - Finance blogs and mortgage rate watchers report that the week ending March 6 saw a massive surge in refinance loan applications; refinancing is at a rate not seen in well over a decade. Low mortgage rates coming as a result of investor reactions to coronavirus news.
March 9, 2020 - The last week of February 2020 was a remarkable one for mortgage loan interest rates. Much has been made of the economic effects of the virus that causes coronavirus disease, also known as COVID-19 or SARS-CoV-2, according to the Centers For Disease Control.
