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 2021
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
April 9, 2021 - The debt-to-income ratio is an important calculation for all borrowers--the more income you have compared to outgoing payments every month the better. So how do borrowers with a lot of debt deal with this problem? Learn about what the FHA considers to be a debt.
April 8, 2021 - There are some general FHA loan rules you should know in the planning stages of your new loan--rules that can help you decide what to do about saving up for a down payment or how to deal with closing costs. Knowing these rules can help you get much closer to home loan approval.
April 7, 2021 - The FHA Cash-Out refinance loan is a way home owners can tap into the equity built up in their homes and take it out in cash once the original loan and the closing costs of the new loan have been dealt with. There are many uses for the money you get in a cash-out refinance transaction.
March 31, 2021 - But the FHA mortgage loan program offers new purchase home loans for owner/occupiers with down payments as low as 3.5%. FHA loan applicants who don’t meet FHA and lender credit score minimum requirements may need to consider a 10% down payment.
March 30, 2021 - FHA home loans are for any financially qualified borrower. They are not limited to those in financial need and they are not restricted to first-time home buyers. However, there are some things you should DEFINITELY do ahead of your home loan and things you should NOT do.
