FHA Down Payment Help

When borrowers apply for an FHA loan they are required to pay, at minimum, a down payment of 3% of the value of their loan. Typically this can be difficult for potential buyers to afford. An alternative for buyers is to get a grant for the down payment through one of the many charitable organizations specializing in helping first-time or low to moderate income individuals and families realize their dreams of homeownership. As many of a third of all FHA loans down payments are being paid for by grant programs like these. Below is a list of the five most prominent charities. Please realize this list is not comprehensive and does not represent all of the not-for-profit organizations providing this type of service.

Nehemiah

Nehemiah is a non-profit organization in California that provides down payment and closing cost assistance of up to 5% of the homes final sale price for qualified FHA borrowers.

After the borrower has been pre-approved for this home loan grant, they will be referred to a real estate agent in their area to help them find a home that meets the program guidelines. The down payment provided by Nehemiah is given directly to the buyer as a gift fund. On the closing day the funds are wired to the settlement agent and will be applied towards the down payment and closing costs of the home. For more information regarding requirements be Nehemiah please check out their website.

HART

HART (The Housing Action Resource Trust) program is another California based non-profit corporation. They help promote homeownership by providing assistance programs for low to moderate income home buyers. The assistance is typically in the form of gift money to be used to pay for the down payments and closing costs for FHA seeking borrowers in amounts up to $15,000 of the ending price for a home.

The HART program is similar to many of the other programs listed here in that potential gift fund recipients must be pre-approved for the grant and will then be referred to a qualified real estate agent in the area as well as a lender that can process their FHA loan. The funds will be given to the home buyer and at the time of closing will be transferred to the closing agent. Find out more about how to qualify for a grant from the HART organization.

AmeriDream

AmeriDream is another non-profit charity organization helping potential homebuyers with down payments on their FHA loans. The gift funds from AmeriDream can be as large as 5 percent of the final home purchase amount. In order to stretch their gift funds as far as possible, AmeriDream requires recipients to agree to give back any of the gifted funds that are not used towards their home and closing costs as well as all of the funds if the sale of the home does not occur on the scheduled close date. More information about AmeriDream, Inc. and their requirements.

Partners in Charity

Partners in Charity is one of the more popular not-for profit organizations promoting home ownership by providing assistance with down payment costs for home buyers using FHA loans. Like many of the other organizations listed here their grants can be used towards, not just the down payment, but towards the closing costs as well. Partners in Charity provides gifts anywhere from 2 to 10 percent of the closing sale price on the home.

Consumer Debt Solutions, Inc.

Our final down payment assistance charity is Consumer Debt Solutions, Inc. They are a non-profit organization and can provide as much as $10,000 to help home buyers pay the down payment and closing costs on their new homes. This grant is only available for those seeking FHA loans to finance their mortgage loan. This program does require potential homebuyers to complete a home buyers education course, but the grant is available to all those who complete the course. To find out more about this program as well as the number of other services provided by ConsumerDebtSolutions visit their website.