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.
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
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.
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 types of closing costs are associated with FHA-insured loans?
A: Except for the addition of an FHA mortgage insurance premium, FHA closing costs are similar to those of a conventional loan. The FHA requires a single, up-front mortgage insurance premium equal to 2.25% of the mortgage to be paid at closing (or 1.75% if you complete the HELP program). This initial premium may be partially refunded if the loan is paid in full during the first seven years of the loan term. After closing, you will then be responsible for an annual premium - paid monthly - if your mortgage is over 15 years or if you have a 15-year loan with an LTV greater than 90%.
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