Did You Know?

Down payment assistance programs have expanded and today are offered by state, city, and municipal governments throughout the country.

FHALoan.com
Click to Start Your Refinance or Purchase Loan

Newsong Program

Since President Bush signed the Housing and Economic Recovery Act of 2008 on July 30, 2008, many federally established down payment assistance programs have been cancelled. The Act prohibits seller-funded Down Payment Assistance for loans backed by the Federal Housing Administration. The details of this program are presented for reference only.

About the Program

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

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

Same-day approval was possible if the loan officer submitted an application before noon during on a business day. The seller was required to participate in the Newsong program and was required to pay a fee. The payment was not a tax-deductible charitable contribution.


Down payment assistance and first-time homebuyer programs have expanded and are offered today by state, city, and municipal governments throughout the country. A curated list of down payment assistance programs is available courtesy of FHA.com.

Ask your loan officer for recommendations on down payment assistance programs, or how to make an offer contingent on the use these program.


<
See Your Credit Scores From All 3 Bureaus
See Your Credit Scores From All 3 Bureaus
GET YOUR SCORES NOW!

FHA Loan Articles

Mortgage Rate Predictions for 2024

In the last days of November 2023, mortgage loan rates flirted with the 8% range but have since backed away, showing small but continued improvement. What does this mean for house hunters considering their options to become homeowners soon?

Is It Cheaper to Buy a Home With an FHA Loan or to Rent?

In May 2023, USA Today published some facts and figures about the state of the housing market in America. If you are weighing your options for an FHA mortgage and trying to decide if it’s cheaper to buy or rent, your zip code may have a lot to do with the answers you get.

Why Do FHA Loans Have Borrowing Limits?

FHA loan limits serve as a crucial mechanism to balance financial sustainability, regional variations in housing costs, and the agency's mission to promote homeownership, particularly for those with limited financial resources.

What to Do About High Interest Rates?

Mortgage rates are hitting prospective homeowners hard this year and are approaching 8%, a rate that didn't seem very likely last winter. With so many people priced out of the market by the combination of high rates and a dwindling supply of homes.

What to Know About the FHA Handbook

The FHA Handbook serves as a crucial resource for mortgage lenders, appraisers, underwriters, and other professionals involved in the origination and servicing of FHA-insured home loans. It outlines the policies and requirements for FHA-insured mortgages.

Some Important Points About FHA Rehab Loans

FHA rehab loans are a specialized type of mortgage loan offered by the Federal Housing Administration that allows borrowers to finance both the purchase or refinance of a home and the cost of needed repairs.


-- Find More Articles in the FHALoan Library --

FHALoan.com is not a government agency. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short term loan services. Neither FHALoan.com nor its advertisers charge a fee or require anything other than a submission of qualifying information for comparison shopping ads. We do not ask users to surrender or transfer title. We do not ask users to bypass their lender. We encourage users to contact their lawyers, credit counselors, lenders, and housing counselors.

SecureRights Advertiser Contact Information