Did You Know?

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

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Partners in Charity

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

Partners In Charity offered 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 was also financial assistance available for rehab programs. If a buyer qualified for an FHA loan or was pre-approved for an FHA home loan they were 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.

Lenders were responsible for sending an application for the Partners In Charity program on the borrower's behalf. Because money from this program could be listed in the "good faith estimate" for sources of down payment funds, it was important to apply for this program during the early stages of the planning process. Loan officers' roles included helping determine the buyers' yneeds need and the correct amount of the down payment on the application forms.

Down payment assistance programs required the seller to pay a fee which was considered a payment for services rendered-- 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.


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FHA Loan Articles

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A down payment is an upfront installment or part of a larger amount paid on a purchase. The remainder is paid off in separate installments, usually with interest, as part of a loan. The down payment represents your initial ownership stake in the home you continue to make payments on.

First-Time Homebuyers and the FHA Loan Requirements

For many first-time home buyers, the FHA loan is a popular option. With its lenient credit and income requirements, it appeals to young borrowers who don’t have an extensive credit history, or enough money saved up for a down payment.

Things to Know About Making an FHA Loan Down Payment

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Benefits of an FHA Loan

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Tips for Buying Your First Home

Most first-time homebuyers decide on purchasing a home at least a year in advance, sometimes even a couple of years ahead of time. The earlier you make a decision to buy a home, the more time you have to save up for your down payment.

Getting Approved for an FHA Loan

While an FHA home loan is a good option for first-time homebuyers who don’t have enough money saved for a large down payment, it’s important to understand the ins and outs of the FHA guidelines, and what it takes to get approved as a borrower. 


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