Futures Home Assistance is a non-profit charity group which offers 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 includes the following steps:
Find a participating seller.
Make an offer with a pre-approved FHA home loan or with an existing FHA loan.
The seller must agree to participate in the Futures Home Assistance program.
Ask your loan officer to apply on your behalf for the Futures Home Assistance program.
If you have an approved FHA home loan, Futures Home Assistance should respond within 24 hours of application (or the next business day). You may be eligible for additional funds beyond the usual 6%. Ask your loan officer for additional information.
Down payment assistance programs usually require the seller to pay a fee to participate. The fee is a payment for services rendered and not a tax-deductible charitable contribution. Ask your loan officer for further information if you have questions.
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.
Q: What happens if interest rates decrease and I have a fixed rate loan?
A: If interest rates drop significantly, you may want to investigate refinancing. Most experts agree that if you plan to be in your house for at least 18 months and you can get a rate 2% less than your current one, refinancing is smart. Refinancing may, however, involve paying many of the same fees paid at the original closing, plus origination and application fees.