HOW DOES THE PROGRAM WORK?
1. After pre-qualifying for a loan, the buyer selects a home and makes an offer contingent on the use of The American Family Funds, Down Payment Gift Program. The average gift is normally between 3 and 5 percent of the purchase price.
2. The builder must accept the offer and agree to pay a fee to American Family Funds, Down Payment Gift Program, from proceeds of the sale of their home, which is applied to the Dove Foundation's gift pool.
3. American Family Funds makes the gift available at the time of settlement, where the funds are applied to cover the buyer's closing costs and/or downpayment obligations.
4. The Builder pays the fee to American Family Funds, Down Payment Gift Program from the proceeds of the sale of the home which is applied to the Dove Foundation's gift pool. This way, the charity never runs out of money!
5. Fees collected by American Family Funds, Inc. are used to cover operating costs and develop new charitable programs and services.
SUGGESTED LANGUAGE FOR THE
This contract is subject to the Purchaser receiving a gift for the down payment/closing costs from the American Family Funds Inc., the administrator of the Dove Foundation's Down Payment Gift Program non-profit charity, in the amount of $_______________.
This contract is subject to the Seller paying a service fee to American Family Funds, Inc., the administrator of the Dove Foundation's Down Payment Gift Program in the amount of $_________________.
WHAT LOANS ALLOW DOWN PAYMENT ASSISTANCE?
DPA Programs work with any loan that allows a gift from a Non-Profit Charity, and can be combined with family gift monies and other fund sources. All FHA loan products and many conventional, VA, and sub-prime products allow for this type of charitable contribution.