FHA Cash Down Payment Grants
|FHA Cash Down Payment Grants, Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to achieve homeownership. FHA Cash Down Payment Grants Many of these programs are no longer available with the passage of the Housing and Economic Recovery Act on July 30, 2008. However, gift monies from family members and government backed bonds and grants are still available. 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 are effective October 1, 2008.