Q: Does this work the same as non-profit down payment assistance?

A: In general, the program works the same, however the funding source is a government entity and not a non-profit organization.  Most non-profit gifting activity is being stopped as a result of IRS Ruling 2006-27.

Q: Is the program available nationwide?

A: Yes, the G.A.P program is available nationwide.

Q: What are the income requirements for the program?

A: The Grant America Program defines a low to moderate-income homebuyer as anyone that qualifies for an FHA loan under HUD guidelines.  For non-FHA loan programs, the definition is met by qualifying for a loan program that accepts grant / gift funds for use towards a down payment.

Q: What is the program's Federal Tax ID Number?

A: As a Government entity, a Federal Tax ID number is not required when entering data into CHUMS.  Please select "Government entity" when entering loan data into the CHUMS system.

Q: Is this program open to all buyers?

A: This program is open to low to moderate-income homebuyers as defined by HUD.

Q: What is the fee?

A: The seller's fee is equal to the amount of the grant plus $395 and is paid at settlement on the HUD-1.  This fee is paid to PIN FHA and is used to replenish the pool of grant funds so PIN FHA can help other homebuyers.

Q: Where does the down payment gift come from?

A: The gift funds are granted to the buyer by the program administrator.  The program is administered by The Fair Housing Administration of the Penobscot Indian Nation (PIN).  PIN is a U.S. federally chartered Government entity.

Q: Can this program be used on new homes?

A: Yes, G.A.P. may be used on both resale and new home purchases.

Q: Why would a seller or builder pay a fee to sell their home through the Grant America Program?

A: To expand their pool of potential buyers.

Q: Is there a limit on the amount of funds gifted?

A: The maximum allowable Gift to a homebuyer from a Government entity may not exceed 10% or $34,000, whichever is less, of the final contract sales price and may only be used toward the homebuyer’s down payment and closing costs.  Concessions and down payment grant cannot exceed sixteen percent of the sales price if used in conjunction with an FHA loan.

Q: Why can’t the seller just give the money to the buyer?

A: This is an inducement to purchase and is illegal.

Q: Does the program participation have to be written into the contract?

A: This is not a requirement of the program.