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
September 20, 2021A down payment is an upfront installment or part of a larger amount paid on a purchase. The remainder is paid off in separate installments, usually with interest, as part of a loan. The down payment represents your initial ownership stake in the home you continue to make payments on.
September 2, 2021For many first-time home buyers, the FHA loan is a popular option. With its lenient credit and income requirements, it appeals to young borrowers who don’t have an extensive credit history, or enough money saved up for a down payment.
August 9, 2021Many first-time homebuyers need some help understanding and navigating the ins and outs of the mortgage process, and down payments are an essential part of that. A down payment is an upfront installment made on a large purchase while the remainder is paid off with a loan.
July 14, 2021Making the decision to buy a house is a big one, followed by the choice of which house to buy. The next biggest decision you make is going to be the type of home loan you need to go through with the purchase. One option for financing your home is an FHA loan.
June 25, 2021Most first-time homebuyers decide on purchasing a home at least a year in advance, sometimes even a couple of years ahead of time. The earlier you make a decision to buy a home, the more time you have to save up for your down payment.
June 8, 2021While an FHA home loan is a good option for first-time homebuyers who don’t have enough money saved for a large down payment, it’s important to understand the ins and outs of the FHA guidelines, and what it takes to get approved as a borrower.
