American Family Funds
FHA Downpayment Grants for Homebuyers
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.
Additional Information:
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.
FHA LOAN QUESTION # 14 [ -more FHA questions- ]
Q: Are FHA loans assumable?
A: Yes. You can assume an existing FHA-insured loan, or, if you are the one deciding to sell, allow a buyer to assume yours. Assuming a loan can be very beneficial, since the process is stream- lined and less expensive compared to that for a new loan. Also, assuming a loan can often result in a lower interest rate. The application process consists basically of a credit check and no property appraisal is required. And you must demonstrate that you have enough income to support the mortgage loan. In this way, qualifying to assume a loan is similar to the qualification requirements for a new one.
If you don't pay your property taxes, hazard insurance or don't live up to your obligations as spelled out in your FHA reverse mortgage agreement, the lender has the right to call in your loan.
Are you in need of some first-time homebuyer relief? The 2009 tax credit offers up to $8000 in tax credits for those who buy between 1 January 2009 and 1 December 2009.
