Futures Home Assistance 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
Futures Home Assistance was a non-profit charity group which offered a down payment gift up to 6% of the closing costs of a home purchased with an FHA loan. The application process for the Futures Home Assistance program included the following steps:
- Buyers started by finding a participating seller.
- They made an offer with a pre-approved FHA home loan or with an existing FHA loan.
- The seller agreed to participate in the Futures Home Assistance program.
- Buyers asked their loan officer to apply on their behalf for the down payment grant.
After being approved for the FHA home loan, Futures Home Assistance was expected to respond within 24 hours of grant application (or the next business day). Buyers may have been eligible for additional funds beyond the usual 6%. Loan officer were helpful in providing this additional information. Down payment assistance programs usually required the seller to pay a fee to participate. The fee was a payment for services rendered and not 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
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.