Newsong 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
Newsong provided down payment assistance for purchases of both residential and commercial properties. The program featured a one-time gift to cover all closing costs, and those who qualified for an FHA loan were eligible to apply for Newsong.
The program did not require inspections or credit checks, and there were no first time homebuyer restrictions. Newsong was open to anyone buying a home with a pre-approved FHA loan or an existing FHA loan.
- Up to $25,000 in down payment assistance was available to cover closing costs on a home purchased with an FHA loan.
- Additional assistance was sometimes available on a case-by-case basis.
- Down payment assistance money was made available 24 hours after approval.
Same-day approval was possible if the loan officer submitted an application before noon during on a business day. The seller was required to participate in the Newsong program and was required to pay a fee. The payment was 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.
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