The Housing Action Resource Trust
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
The Housing Action Resource Trust or HART program is a non-profit housing organization offering help to home buyers who qualify for FHA "first mortgage" loans. A first mortgage does not mean "first-time home buyers only," but rather those who are getting the initial mortgage and not applying for a second mortgage or home equity loan.
Those who have pre-approval for an FHA loan or have an approved FHA loan qualify for HART. This program is aimed at those who have the right credit and employment to qualify for an FHA loan but lack the money for a down payment and/or closing costs. To use the Housing Action Resource Trust:
- Get an FHA-approved loan or pre-approval on an FHA loan.
- Find a house and make an offer.
- Tell your realtor you want to buy the home using the Housing Action Resource Trust program
- Contact your loan officer, who applies to the HART program on your behalf.
As with other down payment assistance programs, the seller must agree to participate in the HART program. Your loan officer will let you know when funds are scheduled to be transferred in your name for the down payment and/or closing costs.
If your seller has not signed up for the HART program but is willing to participate, ask your loan officer and/or realtor for details on how the seller may register with the House Action Resource Trust.
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
July 27, 2021 - What documents do you need to complete a mortgage application? Once you get past the eligibility question, there are a variety of things you’ll want to have at your fingertips when filling out forms to get pre-approved for a purchase loan or apply directly for one.
July 26, 2021 - The most important thing you should know as a buyer about FHA loan credit requirements this year is that FHA standards (580 or better FICO scores for the lowest down payment) are not the only minimum credit score standards at work. The lender’s own standards also count.
July 24, 2021 - ​What factors change FHA loan rates? Interest rates, in general, can fluctuate daily, and it can be difficult to know what to think when you see rates offered at one level from one lender, and at a higher or lower rate elsewhere.
July 22, 2021 - How many mortgage calculators do you need? There are multiple versions and they all have an important function. Many seeking FHA loans won’t need to use all of them or even most of them. Sometimes you just need a little extra information for planning and saving purposes.
July 21, 2021 - Are you concerned that your lender might deny your home loan? Do you know why your loan might be denied and what you can do about it ahead of time? Reasons may include late or missed payments on rent or past mortgages, low credit scores, or houses that cannot pass the appraisal process.
