Family Home Providers Program
Since President Bush signed the Housing and Economic Recovery Act of 2008 on July 30, 2008, many federally established down payment assistance programs have been cancelled. The Act prohibits seller-funded Down Payment Assistance for loans backed by the Federal Housing Administration. The details of this program are presented for reference only.
About the Program
Family Home Providers was a non-profit affordable housing company that offered down payment assistance to families with good work histories and appropriate credit. The terms of the Family Home Providers program stated that those eligible for FHA loans would be able to apply for 3% of the final contract price of the home.
Requirements:
- The home must have appraised for the sales contract price or higher.
- Both buyer and seller must have applied for the program.
- Funds must have been used for the down payment.
- The seller was required to pay closing costs.
Under the Family Home Providers down payment assistance program, out-of-pocket costs for down payment and closing costs should have been less than $1,000. Loan officers could have provided some advice on lowering this amount if buyers felt that the remaining expenses were too high. Some buyers may have been able to re-arrange the closing terms to help absorb some of the expenses into an FHA loan.
Most down payment assistance programs required the seller to pay a fee. This payment was for services rendered and was not allowed as a tax-deductible charitable contribution.
Down payment assistance and first-time homebuyer programs have expanded and are offered today by state, city, and municipal governments throughout the country. A curated list of down payment assistance programs is available courtesy of FHA.com.
Ask your loan officer for recommendations on down payment assistance programs, or how to make an offer contingent on the use these program.
FHA Loan Articles
August 14, 2023FHA loans typically require a minimum down payment of 3.5% of the purchase price of the home with the right credit score. This means that if you're buying a house for $240,000, you would need to make a down payment of at least $8,400.
August 10, 2023FHA loans have specific rules and requirements for borrowers who have filed for bankruptcy. The guidelines can change over time, so it's essential to consult with a qualified lender or FHA-approved counselor for the most up-to-date information.
August 3, 2023FHA loans are primarily designed to help individuals and families purchase homes for use as their primary residences. Rules for these loans generally discourage their use for investment properties or rentals. However, there are exceptions that come with strict rules.
July 29, 2023One crucial aspect of FHA loans that borrowers need to understand thoroughly is debt ratios. In this article, we look at how they can impact your ability to secure financing for your dream home. Debt ratios help lenders understand a borrower's creditworthiness and any risks associated with the loan.
July 21, 2023Investing in a multi-unit property can be an excellent way to build wealth through rental income and property appreciation. FHA multi-unit property loans make this opportunity more accessible to a broader range of individuals. You must occupy a unit as your primary residence within 60 days of closing the loan.
July 15, 2023To qualify for an FHA loan, you must meet certain employment requirements. In this article, we'll dig into the FHA loan employment requirements so that you can understand what's needed to get approved for this type of mortgage.
