Where to get FHA down payment money
Saving to buy a home can be a difficult
task. One of the major attractions to FHA loans is the
minimal amount of down payment money a borrower may actually need. Many
non-profit and public charity organizations have been created
to assist first time home buyers, low to moderate income
families, and general home buyers with the purchase of a home.
FHA down payment assistance can be provided
in the form of gift funds which means that the money does not
have to be repaid. There are several organizations that
provide these gifts and the differences among them are minor.
Qualified home buyers can receive between 1% to 5% towards the
purchase of the home.
There are also many state and local
programs that may provide assistance to 1st time
buyers. You can find out about more of these by talking to
your Lender or Realtor. With the changes to the FHA down
payment rules as of October 1st, 2008 you should check on the
page on sources of funds for
FHA down payments.
Effective October 1st, 2008 -- all
seller funded FHA down payment programs are no longer allowed by
Act of Congress. Many groups are fighting to have this
reinstated so contact your Senator or Congressperson to let
them know your feelings.
To learn more
about down payment assistance and loan grant programs select
from the following:
programs are currently approved they are currently under
review and may change if the Charity looses it's 501c(3)
status. You may check the status of a non-profit at
how to handle a situation where a non-profit has lost it's
non-profit status which can be read by clicking on the
Partners in Charity
The Partners in Charity (PIC) is a non-profit corporation that
promotes homeownership by offering down payment assistance
programs to qualified low and moderate income homebuyers. This
programs offers free gift funds to be used towards the down
payment and closing costs for eligible FHA loan programs.
The AmeriDream Charity, Inc. is designed to provide down
payment assistance to low and moderate income homebuyers who
demonstrate the need for financial assistance. To use their
program, Buyers must purchase a home enrolled in The
AmeriDream Charity down payment Gift Program and qualify for a
The Nehemiah program is a Private California Non-Profit
Organization that offers down payment assistance programs to
qualified homebuyers. This programs offers free gift funds to
be used towards the down payment and closing costs for
eligible FHA loan programs.
Other State and Local Programs
This is a direct link to the Department or
Hudís website. Select your state and you may find local or