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 # 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.
