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Old 07-02-2009, 12:28 PM
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Default Re: Down Payment Assistance

Anyone is allowing HUD approved Down payment Assistance on FHA.

I think the better story is where you can find acceptable programs.

You should contact your county and ask for the division that handles real estate grant funds. This is usually planning and economic development or something labeled similar in nature. Each state also has a master program available statewide that can be used in combination with an FHA loan. For example: Ohio Housing Finance Agency (OHFA).

The county funds is where I would start first. Sometimes these funds are available for down payment and rehabilitation. This program is commonly referred to as a Community Block Grant. Typically it allows up to $35,000 total with a maximum of 10% of the purchase price up to $5,000 to be used for down payment.

Usually the State or County programs put a 2nd lien on your home. It is 0% interest and requires no monthly payment. A portion is forgiven every year for 10 years until 15% of the original amount remains. You only need to pay back the money if you sell the home, or in some cases refinance.
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