The Genesis 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
The Genesis Program, also known as Grant America, is a non-profit down payment assistance program. It is operated by the Penobscot Indian Tribal Nation and technically qualifies as a government entity. Like other Native American tribal nations, the Penobscot tribal nation is HUD-approved to offer assistance, even to those living outside tribal jurisdiction. Grant America offers down payment assistance to low and middle income home buyers:
- Those with an FHA loan or are pre-approved for FHA mortgages qualify for the Grant America program.
- Grant America offers up to $34,000 in down payment assistance.
- This program is open to those with approved FHA loans buying new or resale homes.
- Program participation is not required to be included in the contract, but the seller must participate in the Grant America program.
Applying for a Grant America program is simple:
- Get pre-approved for an FHA loan or complete your FHA mortgage paperwork and get approved for a specific FHA loan amount.
- Find a home you want to buy and agree with the seller to draw up a contract.
- Tell your realtor you want to buy the home using Grant America.
- Contact your loan officer
- Your loan officer will complete a Grant America application on your behalf.
- Grant America wires funds to the bank the day of closing the deal (or the day before if you close in the morning).
Contact your loan officer if you have questions about how the program application process works. Remember, the seller must participate in the program. Your loan officer and realtor may be able to assist if the seller has questions about how to sign up.
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.
