Charity Not For Profit Home Buyer Assistance

Please be advised, the democratic lead congress and the democratic lead senate passed legislation which was signed by President Bush eliminating seller assisted down payment assistance opportunities effective September 30, 2008. This elimination of Seller Funded assistance was packaged by your representatives within a foreclosure bailout legislation.

After this date, seller funded assistance will no longer be available to home buyers of any state. This does not affect home buyers who can qualify for Government Based Home Buyer Grants. This may change with future legislation due to the backlash that has resulted in the Real Estate community and from home buyers themselves. As such, we will leave this document in place until such time as we feel seller funded DPA programs are truly a thing of the past.

There are two types of down payment assistance. The first type is from Charity/Not-For-Profit 501c3 organizations, does not require you to be a first time home buyer, and is based upon certain critical factors relating to seller contributions.

Seller contributions? What do we mean by this? Basically, the seller must agree to make a donation to the organization equal to the amount being gifted by them at closing. (Less a small administrative fee).

Here is an Overview of the process:

As you can see, no actual currency changes hands. What occurs is basically a “an exchange of paper”, with a seller making a contribution for a dollar amount that is deducted from the sellers proceeds. These funds are later wired to the Not-For-Profit 501c3 as a donation. Don’t be fooled by 501c3 organizations that call funds grants.

How it works:

Gross Proceeds
Gross Due From Seller
($ 7,500.00)
Gift to
Gift From
Net Proceeds
Net Due From Seller


Prior to your closing, however, the Not-For-Profit has contributed a down payment equal to the seller’s commitment, less a small administration fee for managing the transaction.

So, what are the critical factors?

  • A Willing Seller
  • A Participating Realtor®
  • A Savvy Lender/Broker Representative
  • A Participating Lender
  • An Approved Loan

This program allows thousands of people to close on their home loans every month. Frankly, it’s a Terrific Way to buy a home! There are absolutely no income restrictions, no housing price caps and no restrictions on prior home ownership. It can be done just as easily with a million dollar home purchase as it can with a fifty thousand dollar home purchase.

Is this legal? Absolutely! As long as the process is done correctly, you can’t go wrong. We jokingly refer to it as “Legalized Money Laundering”.

This is why, if using this system, you really need an experienced Lender/Broker/Banker Representative and Real Estate Professional to correctly facilitate the contracted purchase and funding of YOUR home loan!

Predatory Lending – An award winning educational site for Protecting home buyers from Predatory Lending practices.
Home Buying Guides – The premier guides to buying your home as developed and produced by HUD.

Lets Get Some Charity!!!!

Go to Home Buyer Grants Down Payment Assistance!

Home Buyer Education:
Building A Downpayment

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