Family Home Providers, a non-profit housing company, offers down payment assistance for families with steady employment. This opens up the opportunity of homeownership to many families that could otherwise never purchase a home.
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Equal Housing Lender

Family Home Providers

FHA Downpayment Grants for Homebuyers

Family Home Providers is a non-profit affordable housing company offering down payment assistance to families with good work histories and appropriate credit. The terms of the Family Home Providers program state those eligible for FHA loans may apply for 3% of the final contract price of the home.


  • The home must appraise for the sales contract price or higher.
  • Both buyer and seller must apply for the program.
  • Funds must be used for the down payment.
  • The seller pays closing costs.

Under the Family Home Providers down payment assistance program, out-of-pocket costs for down payment and closing costs should be less than $1,000. Your loan officer can provide some advice on lowering this amount if you feel the remaining expenses are too high. Some buyers may be able to re-arrange the closing terms to help absorb some of the expenses into an FHA loan. Ask your loan officer for further details.

Most down payment assistance programs require the seller to pay a fee. This payment is for services rendered and is not allowed as 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 # 17   [ -more FHA questions- ]

Q: What are the steps involved in the FHA loan process?

A: With the exception of a few additional forms, the FHA loan application process is similar to that of a conventional loan. With new automation measures, FHA loans may be originated more quickly than before. And, if you don't prefer a face-to-face meeting, you can apply for an FHA loan via mail, telephone, the Internet, or video conference.

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.