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
April 23, 2021No matter what kind of market you’re in, it is always best to get pre-approved before going to shop for houses. The last thing you want is to go look at homes, find the one you love, then have to wait on an approval and lose the dream home to another buyer.
March 29, 2021The FHA helps first-time and low-income homebuyers by having lower down payment requirements for its borrowers. Despite this lower credit eligibility criteria set by FHA, it is important to remember that FHA-approved lenders can set their own requirements
March 24, 2021One of the major arguments people have for renting instead of buying is the large upfront cost of a down payment. Depending on the type of loan program you apply and are approved for, this could mean anything between 3.5% and 20% percent of your purchase price.
January 30, 2021As your closing day gets closer and closer, you might start to feel a little nervous. Do you have everything you need? Will something delay the closing? These worries are natural, but the more prepared you are, the less overwhelming it will all seem.
