Today, most lenders, including FHA, have Programs that allow "Gift Funds" to be used towards downpayments or closing costs. Our Foundation will provide the gift funds to these buyers. Since these are gifts, they do not have to be repaid. The funds come from previous service fees provided by home sellers

About Our Program

Our Program is available to those who can show need. Our Program is simple to use and requires that they buyer and seller each fill out one short form. We suggest that the buyer do this with the help of their mortgage professional while the seller can do this with their real estate professional.

In order to qualify a buyer must:

• Purchase a home that has been enrolled in our Program. If the home they would like to buy is not in our Program let us know.
• The buyer must also use a mortgage program that allows for "gift funds".
• Finally they must fill out our Program Application, fax it to us at 202-234-7535 and await approval. We promise an answer within 24 hours.

How Charitable Gift Funds Can Be Used

• Towards the down payment of a home
• Towards the buyer's closing costs
• In some cases, toward debt reduction necessary to meet mortgage qualification*
  *Must be permitted by your loan program

Why Sellers Like Our Program

• It helps them get their home sold faster
• They typically will net out as much or more than if they had negotiated price with the buyer
• Service fees are used to fund future downpayment gifts.
• They get the satisfaction of supporting home ownership

Why Builders Like Our Program

• Most Builders have a marketing expense built into the cost of the home.  This amount will usually cover the service fee to the Foundation.
• Our Program allows the Builder to differentiate themselves from their competition
• By using our Program they have more potential buyers and can sell their homes faster!

Sample language for Sales Agreements

"Buyer and seller agree to participate in the Home Downpayment Gift Foundation Gift Program. Seller agrees to provide a Program Service Fee to the Home Downpayment Gift Foundation in the amount of $______."

Step-By-Step On How Our Program Works

1. A homebuyer will speak with a Real Estate Professional or a Mortgage Professional about purchasing a home. At that time it is usually determined if the buyer lacks the necessary funds for either the down payment or closing costs
2. If so, the buyer is then introduced to our Program by the Realtor or Lender. Together they determine the amount of the gift they will need from us. Our Gifts can be up to 6% of the home purchase price.
3. The Mortgage Professional will, on behalf of the buyer, apply for a mortgage approval with a Loan Program that accepts Gift Funds
4. Once the buyer finds a home they like, they will make the seller an offer with the contingency that the seller pays a service fee to the Home Downpayment Gift Foundation. Click here for sample addendum language.
5. Even if a contract on the home has been written you can still use our Program. We can help when last minute problems arise. Call us for details.
6. The service fee will usually range between 3% and 6% of the final home purchase price. The service fee will be determined by the amount of the gift we will provide to the buyer plus an additional ¾ of a percent of the final home sale price.
7. The Funds are used by the Foundation to replenish our Gift Fund, to provide funding for other needy causes and to pay administrative expenses.
8. If the seller agrees to the terms of the offer, the buyer, with assistance from their mortgage professional, will fill out our application.
9. At the same time, the seller will receive from the real estate professional our Seller Enrollment Form and fill it out.
10. When the Buyer Application and Seller Enrollment have been completed they together are faxed to us at 202-234-7535.
11. The Foundation will in turn provide an answer to the applicant within 24 hours of receiving both the Buyer Application and the Seller Enrollment Form.
12. Prior to the home closing, we will contact the settlement agent to make arrangements for the funds to be wired.
13. We will make sure the funds are there for the settlement so that the buyer has the money they need to purchase their home.
14. Following the closing, the service fee from the seller will be wired to the Foundation by the settlement agent.

As a lender/broker you know that to keep ahead of the competition you need to have an edge. To do this you must find ways to be creative. Now that you have found one, make it work for you!

The Home Downpayment Gift Foundation can give you that advantage.

If you have any questions please contact us at 1-888-856-4600 or E-mail us