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On July 30, 2008, President Bush signed the Housing and Economic Recovery Act of 2008 which prohibits seller-funded down payment assistance. Historical program information is only provided for reference on this website. These grants are no longer available.

FHA Loan Programs for 2023

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FHA.com is a privately owned website, is not a government agency, and does not make loans.

Family Home Providers Program

Loan Assistance Programs Canceled in 2008

Elimination of Nonprofit 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 2023

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:

RHO

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FHA Loan Articles and Mortgage News

FHA One-Time Close Construction Loan Limits: Higher in 2023

January 30, 2023 - Do you want to build a home from the ground up? You can do this with low down payment requirements with an FHA One-Time Close Construction Loan. And construction loan borrowing power has increased in 2023 because FHA loan limits have increased from the previous year.

FHA Loan Mistakes to Avoid in 2023

January 25, 2023 - No matter what the condition of the housing market, there are some important things to remember when buying a home with an FHA mortgage. Are you anticipating some of the most common home buying mistakes? Here are some things to look out for.

Are Interest Rate Buydowns a Good Idea?

January 23, 2023 - An interest rate buydown can temporarily lower the interest rate on a home loan; the USA Today example shows how a borrower could save $250 a month in the first year of home ownership using an interest rate buydown.

Choices to Make When Renovating Your Home

January 21, 2023 - Thinking about buying a fixer-upper with an FHA 203(k) Rehabilitation Loan? Or are you considering a home improvement project financed with an FHA Cash-Out Refinance? You have a set of choices to make far beyond selecting a lender, deciding on the loan type and term, etc.

HUD Announces Proposed FHA Appraisal Reform

January 20, 2023 - HUD wants to give FHA borrowers a way to formally complain about appraisal bias when purchasing a home with an FHA mortgage. It’s called a Reconsideration of Valuation, and it’s part of a larger effort to end racial bias in the housing industry.