American Family Funds runs a non-profit charity called The Dove Foundation. This charity offers down payment and/or closing cost assistance to home buyers with FHA home loans and to those pre-approved for FHA loans.
American Family Funds runs a non-profit charity called The Dove Foundation. This charity offers down payment and/or closing cost assistance to home buyers with FHA home loans and to those pre-approved for FHA loans. The program features:
A simple application. (Your loan officer will complete the paperwork).
No income requirements or credit investigation.
Unlimited down payment assistance and/or closing costs.
Down payment money made available at the time of settlement.
Amounts range between 3% and 6% of the contract price of a house. Depending on your need or other factors your specific terms may vary.
Ask your loan officer for details on American Family Funds, down payment assistance programs, or how to make an offer contingent on the use of the AFF program. The seller must participate in the program and like most down payment assistance plans, the seller must pay a small fee. No fees are required of the buyer.
Elimination of Non-profit Down Payment Assistance
On July 30, 2008, President Bush signed H.R. 3221 - Housing and Economic Recovery Act of 2008.
Section 2113 of the bill prohibits seller-funded DPA (Down Payment Assistance) for loans backed by
the Federal Housing Administration. Prior to this bill, the seller could contribute up to 6% to the buyer to
cover either a down payment or closing costs on an FHA loan. The changes became effective October 1, 2008.
Since this program is no longer available, we recommend that you get pre-approved for a low down payment FHA home loan.
A: Discount points allow you to lower your interest rate. They are essentially prepaid interest, With each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage, the interest rate is reduced by 1/8 (or.125) of a percentage point. When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases With each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.