Responsible Home Ownership
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
The Responsible Home Ownership program is run by a non-profit organization called Community Housing and Development Corp. The Responsible Home Ownership program offers down payment assistance to low-income individuals who have steady income and good credit. You may qualify for this program if you meet the following criteria:
- You meet the low-income criteria for this assistance program.
- You are pre-qualified for an FHA home loan, or are approved for an FHA loan.
- You are purchasing a home in the United States (as opposed to "offshore").
- You purchase a "participating home".
The participating home requirement means the seller must sign the "Participating Home Agreement". Check with your loan officer and/or realtor to learn how to get your seller involved in this program if the seller is not already participating. Funds from this program can be used for both closing costs and down payments.
This down payment assistance program is much different than other programs in one major way; it is not limited to owner-occupied single family residences. The terms of this program allow down payment assistance for multi-family homes and even commercial purchases.
Some of the purchases you can make using down payment assistance from the Responsible Home Ownership program may fall outside the bounds of what you are permitted to buy with an FHA loan. Check with your loan officer if you have specific questions about your participation in this program using an FHA-approved home loan.
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
April 2, 2020 - If you have an FHA mortgage, refinance loan, or One-Time Close construction mortgage and are experiencing financial hardship as a result of the COVID-19 outbreak, you may qualify for certain relief measures including those announced in this latest HUD action. What kind of relief may be available to you?
April 1, 2020 - FHA lenders have been asked by the Department of Housing and Urban Development to use reasonable judgment when trying to decide who is legitimately affected by COVID-19 for the purpose of evaluating the loan.
March 30, 2020 - Recently the FHA and HUD issued a mortgagee letter announcing that appraisal rules had been temporarily modified to permit exterior-only appraisals for FHA home loans and reverse mortgages.
March 20, 2020 - The Department of Housing and Urban Development has announced immediate relief for home owners affected by the national coronavirus outbreak. Effective immediately there is a HUD-mandated moratorium on all foreclosures on FHA Single-Family home loans for sixty days.
March 19, 2020 - Making your mortgage payment in times like these can be challenging, and many fear getting behind. What should a home owner do if it appears that a late or missed home loan payment is on the horizon?
