Newsong provides down payment assistance for purchases of both residential and commercial properties. The program features a one-time gift to cover all closing costs, and those who qualify for an FHA loan are eligible to apply for Newsong.
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Newsong

FHA Downpayment Grants for Homebuyers

Newsong provides down payment assistance for purchases of both residential and commercial properties. The program features a one-time gift to cover all closing costs, and those who qualify for an FHA loan are eligible to apply for Newsong.

The program does not require inspections or credit checks, and there are no first time homebuyer restrictions. Newsong is 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 is available to cover closing costs on a home purchased with an FHA loan.
  • Additional assistance may be available on a case-by-case basis.
  • Down payment assistance money is made available 24 hours after approval.

Same-day approval is possible if your loan officer submits an application before noon during on a business day. The seller must participate in the Newsong program and is required to pay a fee. The payment is not a tax-deductible charitable contribution. Ask your loan officer for further information if you have questions.

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 are discount points?

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.



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.


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