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 1^st 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: 

While these 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 http://apps.irs.gov/app/pub78.

HUD has released guidelines on how to handle a situation where a non-profit has lost it's non-profit status which can be read by clicking on the hyperlink under guidelines.

This is a direct link to the Department or Hud’s website. Select your state and you may find local or state programs.