The Housing Action Resource Trust
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 2022
The Housing Action Resource Trust or HART program is a non-profit housing organization offering help to homebuyers who qualify for FHA "first mortgage" loans. A first mortgage does not mean "first-time homebuyers 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
September 26, 2022 - Knowing the FHA loan rules for loan approval in certain regions of the country can be important especially if the home you want to buy may be located in a known flood zone. Homes in certain types of flood zones or Special Flood Hazard Areas are not eligible for FHA mortgages.
September 25, 2022 - FHA appraisers must follow certain rules governing the process including some that address specific systems in the home. Some FHA appraisal requirements depend on standards set by the local authority, while others have specific guidance found in FHA rulebooks.
September 16, 2022 - If you seek an FHA One-Time Close construction loan or an FHA 203(k) Rehabilitation loan, there are some questions to ask when comparing lenders. You will need to know the lender’s policy on things like how the loan converts from the construction phase to the permanent phase.
September 14, 2022 - Borrowers who want FHA condo loans, or who buy homes in neighborhoods that have homeowner associations may be required to sign agreements for maintenance of common areas, agreements not to radically alter the exterior aesthetics of the home, or other covenants.
September 13, 2022 - The FHA offers something called a 203(k) Rehab loan for borrowers who want to purchase and rehab a property. This is a great loan offering, but what about borrowers who don’t need to do extensive rehab work to a home?
