What exactly is charitable down payment assistance? Under federal law, a homebuyer may use a monetary gift as a down payment if the gift comes from a qualified source, such as a family member, employer, or certified charity. To date, more than one million families and individuals have utilized down payment assistance from charitable organizations like AmeriDream, generating nearly $10 billion in home equity across the country between 2000 and 2005.
Downpayment assistance programs also serve as a safer alternative to sub-prime mortgages, which have prompted foreclosures across the country. In fact, ninety-four percent of charitable down payment assistance recipients have met their mortgage obligations without undue difficulty. As a result, many Democrats and Republicans in Congress have recognized charitable down payment assistance as a proven means for aspiring homeowners to make a down payment.
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