The Partners in Charity (PIC) is a non-profit corporation that promotes homeownership by offering down payment assistance programs to qualified low and moderate income homebuyers.
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Partners in Charity

FHA Downpayment Grants for Homebuyers

Partners In Charity offers need-based down payment assistance between 2% and 10% of the final closing price on the purchase of single-family homes, condominiums, and multi-unit properties. (There is also financial assistance is also available for rehab programs.) If you qualify for an FHA loan or are pre-approved for an FHA home loan you are eligible to apply for down payment assistance from Partners In Charity.

There is only one requirement; you must intend to occupy the building you purchase. Down payment assistance for rental properties is not allowed under the Partners In Charity program. Funds can be used for closing costs and down payment, and this assistance can be listed as the source of down payment in the FHA loan pre-approval process.

Your lender is responsible for sending an application for the Partners In Charity program on your behalf. Because money from this program can be listed in your "good faith estimate" for sources of down payment funds, it's important to decide about applying for this program in the early stages of your planning. Your loan officer can help you determine your need and the correct amount of the down payment on the application forms.

Down payment assistance programs require the seller to pay a fee which is considered a payment for services rendered-- 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 # 18   [ -more FHA questions- ]

Q: What is the debt-to-income ratio for FHA loans?

A: The FHA allows you to use 29% of your income towards housing costs and 41% towards housing expenses and other long-term debt. With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt.



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.