Down Payment Assistance

Down payment assistance is provided to homebuyers through various gift fund programs and is becoming increasingly popular, especially with first-time homebuyers. Funds provided for down payment assistance are “gift funds” and do not have to be repaid, which means there's no additional expense on your part in the purchase of a home.

Both buyers and sellers can qualify for this program and just need to meet a few simple requirements. Homes must be insurable and pass all FHA inspections and must appraise for the final contract price or higher. Lenders can use down payment assistance programs with any type of loan; however, the seller/investor must accept down payment gift funds from the non-profit entities offering this service.

Your Realtor( should insure that the Seller/Builder signs the participating home service fee agreement (forms vary per non-profit entity so be sure to ask your agent about this agreement), and must be signed prior to or at the time of closing. The signing of this document authorizes the gift provider to deduct the fees associated with this service from the seller's funds at closing. Should the sale not close, and the buyer not purchase the home, there's no obligation on the part of the buyer or seller.

To learn more about down payment assistance programs, visit the sites of these providers for more information:

familyhomeproviders.org
getdownpayment.com
gcdd.org/programs/housing/