Newsong 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 2020
Newsong provides a down payment assistance program for residential and commercial properties. This program offers a one-time gift for all closing costs, and there are no income requirements or limits on who can participate. Anyone who qualifies for an FHA loan can apply to receive down payment help from Newsong. The program does not require inspections or credit checks, and there are no restrictions on where you wish to buy your home as long as it is within the "geographic United States". The program offers:
- No "first time homebuyer" restrictions-this program is for anyone buying a home with a pre-approved FHA loan or an existing FHA loan.
- Up to $25,000 for closing costs for a home purchased with an FHA loan.
- More funds available on a case-by-case basis-your loan officer will provide more information if you need to request additional assistance.
- Gift funds made available 24 hours after approval.
If you are approved for an FHA loan and want to participate in the Newsong program, take the following steps:
- Find a home and make an offer.
- Once the offer is approved, contact your loan officer and ask about the Newsong program.
- Tell your realtor you want to buy the home using the Newsong program
- Your loan officer applies to Newsong on your behalf.
- Money is available up to 24 hours after the application is approved.
In many cases same-day approval is possible if your loan officer can complete and send the paperwork before noon. The seller must participate in the Newsong program. Ask your loan officer and/or realtor how your seller should sign up for Newsong.
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
January 18, 2020 - FHA loans permit cosigners, co-borrowers, even non-occupying co-borrowers. The rules for cosigning, co-borrowing, etc. are found in HUD 4000.1, the FHA Lender’s Handbook, but there may also be additional standards imposed by the lender.
January 15, 2020 - Some borrowers are, and some are not--much depends on the nature of your mortgage transaction. UFMIP is always required on FHA loan transactions and must be paid either in cash at closing time or must be financed into the loan amount.
January 13, 2020 - A One-Time Close loan can help you build a home without the requirements some other construction loans have -- two applications, two loans, and two closing dates. These construction loans are for first-time home buyers AND experienced home owners alike.
January 4, 2020 - Purchasing a home, or building one from the ground up using a construction loan, is a serious commitment. You’ll need to review your credit rating and credit history, which is beneficial no matter what you decide about buying a home.
January 2, 2020 - Did you know FHA mortgages are not limited to first-time home buyers or those who have never owned property before? It’s true--you don’t need to have a financial need or be a first-time buyer to qualify.
