Click on a question to jump to the answer.

• What is Down-Payment Assistance?
• Who qualifies?
• What is required from the Seller?
• Are there Income Guidelines?
• Does the Home Downpayment Gift Foundation require underwriting of the buyer's loan?
• Is the buyer required to complete the HUD Home Buyers Guide?
• How do we get funds or approval?
• How are funds received at closing?
• How much Notice is needed to receive funds?
• Can I use this as a Non-conforming borrower?
• Where do the funds come from?
• Do you recommend lenders?
• Why is this program favored over other such programs available?
• Isn't the seller essentially paying the buyer's down payment?

What is Down-Payment Assistance?

FHA allows the 3% down payment required by the buyer to come from one of three sources. Buyer's funds, a gift from a relative, and/or a gift from a charity or public entity. In any of these cases, the down payment cannot be a loan or require any type of repayment from the buyer. These funds must be a gift.This is where the Home Downpayment Gift Foundation can help. We have set aside funds to help homebuyers realize their home ownership dreams.

Back to Top

Who qualifies?

The borrower must be approved by a lender that will accept a gift from our charity as an acceptable form of funds for the buyer to use towards the buyer acquisition cost. The borrower must be purchasing the subject property as a primary residence and not own any other home at the time of purchase, unless the other home is listed for sale at the time of closing. Although this is our policy, if this policy causes a hardship, please submit a request of waiver.

Back to Top

What is required from the Seller?

The seller must agree to participate in the Platinum Advantage Gift Program and pay a service fee based upon the final home sale price.

Back to Top

Are there Income Guidelines?

The Home Downpayment Gift Foundation was designed for people with low to moderate income. Most individuals would qualify.

Back to Top

Does the Home Downpayment Gift Foundation require underwriting of the buyer's loan?

No, we do not have any additional loan conditions. Once the lender has approved the purchaser and the property for the loan, we will provide the source of down payment as needed, and as agreed to by the Seller. We do not require seeing the approval or any part of the guidelines, appraisal, or home warranties. If the lender is able to fund the loan we believe all guidelines have been met.

Back to Top

Is the buyer required to complete the HUD Home Buyers Guide?

Although we recommend Home Buyer Education, we do not require the purchaser to take the course in order to receive the gift.

Back to Top

How do we get funds or approval?

Fax the application and seller enrollment form to 202-234-7535 and the application will be processed within 24 hours or less.

Back to Top

How are funds received at closing?

Funds are delivered directly to the closing agents escrow account via a wire transfer.

Back to Top

How much Notice is needed to receive funds?

We guarantee that if you give us 24 hours notice we will have your funds at the closing table. It's a priority to us to never hold up a closing. We realize everyone has worked hard to get to the closing table.

Back to Top

Can I use this as a Non-conforming borrower?

Yes, if the lender allows gifts or non-sourced money for what you are requesting the funds for.

Example: A typical non-conforming borrower may be qualified for 80% or 85% Loan-to-Value, but in most cases, the lender may only require 5% to 10% of the down payment to be sourced. The remaining 5% to 10% could come from the Foundation, but you should check with each lender on their policies. Also, keep in mind that we are willing to help buyers with amounts greater than 6%, but they would need to have that amount in the sales price of the home.

Some examples of use:

• Community Home Buyers 3/2 program 2% can be a gift
• Step ARMs
• Gifts can be used to buy down the initial interest rate
• Buy down the interest rate to qualify the borrower for a higher mortgage
• Advertise a lower than market interest rate. Have the seller build the service fee into the asking price to pay the discount point
• Builders can roll the cost of this service into their home pricing.

Back to Top

Where do the funds come from?

Funds are raised by the foundation. We do not receive any government support. It is our belief, that the private sectors, such as non-profit corporations, can meet most of the needs of the community. Also, the seller service fees replenish the fund. We will never run out of money.

Back to Top

Do you recommend lenders?

Many lenders have already approved the use of the Home Downpayment Gift Foundation as an acceptable form of funds for the buyers acquisition cost. Please contact us at 1-888-856-4600 for a current list of lenders. We will be happy to work with your favorite lender to secure their approval.

Back to Top

Why is this program favored over other such programs available?

• No underwriting of loans
• No income guidelines
• No delayed funding
• Fast processing
• Excellent customer service
• Our Marketing Representatives, and office staff can assist you in increasing your business through the use of innovative techniques and programs to increase the marketing potential of your listings, and to increase the approval rate of your buyers.

Back to Top

Isn't the seller essentially paying the buyer's down payment?

Absolutely not. Under mortgage guidelines (FHA) it is inappropriate for the seller to contribute money towards a down payment in order for a buyer to purchase the seller's home. The service fee collected by the Home Downpayment Gift Foundation is not used for down payment assistance for that particular seller's property. The Home Downpayment Gift Foundation gives the money requested by the buyer from its pre-existing funds. The seller only pays a service fee after, and if, the closing occurs.

Back to Top