The down payment assistance is provided in the form of gift funds which means that the money does not have to be repaid.  Though there are several organizations that provide these gifts, the differences among them are minor. Qualified home buyers can receive between 1% to 5% towards the purchase of the home. The home buyer may be required to have additional savings in the bank. However, the home buyer must use an approved mortgage lender, an approved real estate agent , and qualify for an FHA home loan.

Qualifying for down payment assistance is as easy as 1, 2, 3

1)Contact your mortgage lender to begin the qualifying process.

2)Your lender will put you into contact with an approved real estate agent (which may vary from program to program) to assist you in finding a qualifying house.

3)Close and move!

To learn more about down payment assistance and loan grant programs select from the following:

The Nehemiah down payment assistance program provides qualifying home buyers with free gift funds for the use towards the down payment and closing costs for eligible loan programs.  The funds provided by the Nehemiah Corporation do not have to be repaid at any time.

How it works:

Potential home buyers must first qualify for an eligible home loan through an approved mortgage lender (such as Sun Nations Mortgage).  Upon qualifying, the lender will begin the application process for the home loan grant and the home buyer will be referred to an approved real estate agent to begin finding a home that qualifies under the program guidelines (see below).  Once an offer is accepted from the seller, the lender, real estate agents and title /escrow company finish any remaining steps to include a title search , inspections, appraisal, etc. prior to the designated closing date on the real estate contract. Gift funds are wired to the title/escrow company and the home buyer closes on the transaction.   

Program Guidelines:

It is important to note that the seller is not paying for the buyer's down payment. Under these programs the seller's contribution to the Corporation is made after a successful closing and the buyer's down payment assistance is taken from an existing pool of funds.

Another misconception is that the eligible homes are sold overpriced in order to compensate for the seller's three percent contribution to the Nehemiah program.  The reality is that the eligible loan programs will not allow the home to sell for more than its current market value (as determined by an independent appraiser) unless the buyer is willing to make up the difference between the higher than market sales price and its current appraised value (which defeats the purpose of the down payment assistance). However many homes do sell for the full market value but that price is ultimately determined by you (with the assistance of your real estate agent) and the seller.

AmeriDream Charity, Inc. is a non-profit corporation that provides down payment assistance to low and moderate income home buyers who demonstrate the need for financial assistance.  Down payment assistance is provided directly to the home buyer as a gift that does not need to be repaid.

How it works:

Potential home buyers must first qualify for an eligible home loan through an approved mortgage lender (such as Sun Nations Mortgage).  Upon qualifying, the lender will begin the application process for the home loan grant and the home buyer will be referred to an approved real estate agent to begin finding a home that qualifies under the program guidelines (see below).  Once an offer is accepted from the seller, the lender, real estate agents and title/escrow company finish any remaining steps to include a title search, inspections, appraisal, etc. prior to the designated closing date on the real estate contract. Gift funds are wired to the title/escrow company and the home buyer closes on the transaction.

Program Guidelines:

Housing Action Resource Trust (HART) is a non-profit corporation that promotes home ownership through its down payment assistance program to low and moderate income home buyers who demonstrate the need for financial assistance.  Down payment assistance is provided directly to the home buyer as a gift that does not need to be repaid.

How it works:

Potential home buyers must first qualify for an eligible home loan through an approved mortgage lender (such as Sun Nations Mortgage).  Upon qualifying, the lender will begin the application process for the home loan grant and the home buyer will be referred to an approved real estate agent to begin finding a home that qualifies under the program guidelines (see below).  Once an offer is accepted from the seller, the lender, real estate agents and title/escrow company finish any remaining steps to include a title search, inspections, appraisal, etc. prior to the designated closing date on the real estate contract. Gift funds are wired to the title/escrow company and the home buyer closes on the transaction.

Program Guidelines:

It is important to note that the seller is not paying for the buyer's down payment. Under the HART program, the seller's contribution to the HART is made after a successful closing and the buyer's down payment assistance is taken from an existing pool of funds.  

Another misconception is that the eligible homes are sold overpriced in order to compensate for the seller's contribution to the HART program.  The reality is that the eligible loan programs will not allow the home to sell for more than its current market value (as determined by an independent appraiser) unless the buyer is willing to make up the difference between the higher than market sales price and its current appraised value (which defeats the purpose of the down payment assistance).  However many homes do sell for the full market value but that price is ultimately determined by you (with the assistance of your real estate agent) and the seller. 

Consumer Debt Solutions, Inc. (CDS) is a non-profit corporation that provides down payment assistance program to low and moderate income home buyers through their Home Grants Program.  A Home Grant given to the home buyer is a cash gift that does not need to be repaid.

How it works:

Potential home buyers must first qualify for an eligible home loan through an approved mortgage lender (such as Sun Nations Mortgage). Upon qualifying, the lender will begin the application process for the home loan grant and the home buyer will be referred to an approved real estate agent to begin finding a home that qualifies under the program guidelines (see below).  In the meantime, the buyer will be contacted in order to complete the educational requirement which can be completed over the phone, on the internet or through the mail.  Once an offer is accepted from the seller, the lender, real estate agents and title/escrow company finish any remaining steps to include a title search, inspections, appraisal, etc. prior to the designated closing date on the real estate contract. Gift funds are wired to the title/escrow company and the home buyer closes on the transaction.

Program Guidelines:

Partners in Charity (PIC) is a non-profit corporation dedicated to assisting people in becoming home owners through gift down payments to qualified home buyers.  The PIC down payment assistance program is a gift that does not need to be repaid and does not place a lien against the home.

How it works:

Potential home buyers must first qualify for an eligible home loan through an approved mortgage lender (such as Sun Nations Mortgage).  Upon qualifying, the lender will begin the application process for the home loan grant and the home buyer will be referred to an approved real estate agent to begin finding a home that qualifies under the program guidelines (see below).  In the meantime, the buyer will be contacted in order to complete the educational requirement which can be completed over the phone, on the internet or through the mail.  Once an offer is accepted from the seller, the lender, real estate agents and title/escrow company finish any remaining steps to include a title search, inspections, appraisal, etc. prior to the designated closing date on the real estate contract. Gift funds are wired to the title/escrow company and the home buyer closes on the transaction.  

Program Guidelines: