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 between 3 and 5 percent of the purchase price.
2. The seller 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.
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 seller pays the fee to American Family Funds, Down Payment Gift Program from the proceeds of the sale of their home. This fee, less administrative costs, is returned to the Dove Foundation's gift pool.
5. Administrative fees collected by American Family Funds, Inc. are used to cover operating costs and develop new charitable programs and services.
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 .
HOW TO USE AMERICAN FAMILY FUNDS
The process is SIMPLE!
The Selling Agent: Presents an offer with AFF's Down Payment Assistance Provision in the contract.
The Listing Agent: Ensures that the seller agrees to sign the Gift Application at Closing.
7 EASY STEPS TO THE CLOSING TABLE
1) Seller agrees to participate in AFF Gift Program, and the Real Estate Professional presents the one page Gift Application to the seller when listing or selling the property.
2) Mortgage Company faxes, or completes AFF's simple online form
3) AFF generates approval confirmation for the lender (same day)
4) Mortgage Company processes and underwrites loan
5) AFF wires borrowers Gift Funds to the settlement agent prior to closing
6) Closing takes place
7) Settlement agent completes transaction with AFF.