Down-payment assistance programs like Ameridream and Nehemiah
have offered home buyers....an opportunity to obtain mortgage loans with the help of non-profit organizations and charity assistance groups that contribute the down-payment for buyers to obtain FHA loans.
As, Federal regulators are closely examining lending practices there is increasing scrutiny of these programs as questions arise if the down-payment is actually a contribution or kick-back from the seller. Here's why; The money is a credit funneled from the seller to the non-profit organization to the buyer as a down-payment.
This practice, which has been described as a ‘loophole' in FHA guidelines that allows down -payments from charities
is no longer available after October 1, 2008
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