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 2017
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:
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.
