AmeriDream is designed to provide downpayment assistance to low and moderate income homebuyers who demonstrate the need for financial assistance.
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AmeriDream

FHA Downpayment Grants for Homebuyers

AmeriDream is a non-profit organization which helps low and moderate income families to buy homes with a free down payment assistance gift. Those who meet the income requirements and qualify for an FHA loan are eligible to apply for AmeriDream. This program offers assistance for up to 10% (typically 3%-6%) of the purchase price.

To participate in the AmeriDream down payment assistance program, buyers should;

  • Get pre-approved for an FHA mortgage and start looking for a home.
  • Make an offer and get a contract.
  • Ask your loan officer to apply for AmeriDream in your name.

Once your application is approved you will receive a notice from AmeriDream and you can proceed to closing. The seller must participate in the AmeriDream program and pay a fee. Your loan officer may be able to help a seller sign up for the program (by showing where to apply).

AmeriDream is intended for low-to moderate income families, but there are many down payment assistance programs with no income requirements, asset limits or credit checks. If your income disqualifies you from AmeriDream, explore other options with non-profit agencies that allow higher incomes or with more lenient requirements.

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 # 13   [ -more FHA questions- ]

Q: What types of closing costs are associated with FHA-insured loans?

A: Except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan. The FHA requires a single, up-front mortgage insurance premium equal to 2.25% of the mortgage to be paid at closing (or 1.75% if you complete the HELP program). This initial premium may be partially refunded if the loan is paid in full during the first seven years of the loan term. After closing, you will then be responsible for an annual premium - paid monthly - if your mortgage is over 15 years or if you have a 15-year loan with an LTV greater than 90%.



First time home buyers purchasing a home with an FHA loan or going through a HUD-approved charitable agency can use their 2009 First Time Homebuyer's Tax Credit to make their downpayment. Down payment assistance programs allowed the seller and charitable organizations to contribute towards the closing costs and down payment of FHA loans.



FHA Loan Rates
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FHALoan is a private corporation, is not a government agency, and does not make loans.