AmeriDream 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
AmeriDream was a non-profit organization which helped low and moderate income families buy homes with a free down payment assistance gifts. Those who met the income requirements and qualified for an FHA loan were eligible to apply for AmeriDream. This program offered assistance for up to 10% (typically 3%-6%) of the purchase price.To participate in the AmeriDream down payment assistance program, buyers were asked to:
- Get pre-approved for an FHA mortgage and start looking for a home.
- Make an offer and get a contract.
- Ask ytheir loan officer to apply for AmeriDream in their name.
Once the application was approved they received a notice from AmeriDream that they could proceed to closing. The seller was required to participate in the AmeriDream program and pay a fee. The loan officer might have been able to help a seller sign up for the program (by showing where to apply).
AmeriDream was intended for low-to moderate income families, but there were many down payment assistance programs with no income requirements, asset limits or credit checks.
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.
