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 2019
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
December 8, 2019 - If you are planning for a new home loan in 2020, saving up early for your loan expenses can be very useful. You may not be able to anticipate every expense for the new loan, but if you buy or build a house in 2020 you’ll want to prepare for some known mortgage-related expenses.
December 3, 2019 - When applying for an FHA home loan, there are issues that can slow down the progress of your mortgage, whether you are applying for a mobile home loan or an FHA One-Time Close Construction Loan. Some may be preventable in the planning stages of your loan.
December 1, 2019 - Are you thinking about buying a home in 2020? Mortgage loan interest rates on FHA, VA, and conventional home loans were at incredible lows in 2019. Will these trends continue into the new year? While it's possible, it's not safe to assume that current rates and terms will continue.
November 30, 2019 - There are definitely ways to protect yourself in the online home loan process. The best and most obvious advice is to never respond to unsolicited communication involving a home loan. In other words, if you the customer did not initiate the conversation, it’s best not to respond.
November 24, 2019 - You cannot be legally denied housing because you have children, are a single parent, are a non-traditional couple or parent, are transgender or identify as such, or any other non-financial excuse not to provide or continue providing housing.
