The Quickdown program works together with non-profit agencies to offer down payment help for home buyers with approved or pre-approved FHA home loans. Quickdown is designed for first-time home buyers who can't afford to buy a home without down payment assistance.
Like other down payment assistance programs, Quickdown requires the seller to participate, but Quickdown does not work in direct contact with the seller. Ask your loan officer or real estate agent about finding a participating seller or getting a willing seller involved in the program. If you have an FHA home loan and make an offer to a participating seller, apply for Quickdown through your loan officer who will submit an application for pre-approval. It's important to decide on using this down payment assistance program as early as possible to avoid delays in processing and to get your funds in time for the closings date.
Most down payment assistance programs require the seller to pay a fee to participate. It is important to note that the fee is considered a payment for services rendered. It is not 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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