Reviewing our most frequently asked questions will provide a general overview of how DPA Alliance Corporation can work for you and your clients.
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What is DPA Alliance Corporation?
DPA Alliance Corporation is a 501(c)(3) nonprofit organization created and operated exclusively to provide homeownership opportunities for families that cannot otherwise afford to purchase safe and decent housing.
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What does DPA Alliance Corporation do?
DPA Alliance Corporation provided financial aid in the form of downpayment assistance gift funds to families and individuals who otherwise meet the guidelines for an affordable mortgage loan program, but who do not have the necessary downpayment and/or closing costs required and cannot otherwise afford to purchase a home without such assisance.
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What are gift funds?
Cash that is gifted to a home buyer at closing to be used for their downpayment and/or closing costs.
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Do gift funds have to be repaid by the buyer?
No. They are a genuine gift with no repayment obligation.
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Are there restrictions on how gift funds must be used?
Yes. They must be used in their entirety to pay a home buyer's downpayment and/or closing costs.
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Are there restrictions on who may receive gift funds?
Yes. As a 501(c)(3) nonprofit organization, DPA Alliance Corporation must restrict its gift funds to individuals who otherwise meet the guidelines for an affordable morgage loan program, but who do not have the necessary downpayment and/or closing costs required, and cannot otherwise afford to purchase a home without such assistance.
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What is an affordable mortgage loan program?
FHA-insured mortgages are most common as they increase homeownership opportunities for first-time homebuyers and buyers who may not qualify for conventional mortgages. FHA regulations also allow downpayment assistance to be gifted to buyers meeting DPA Alliance Corporation's buyer restrictions.
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Is DPA Alliance Corporation a government program?
No. However, DPA Alliance Corporation and its method of operating does comply with the underwriting guidelines of government loan programs (such as FHA).
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Where do DPA Alliance Corporation funds come from?
As a 501(c)(3) nonprofit organization with a 509(a)(2) designation, DPA Alliance Corporation is authorized to raise funds from fees charged to home sellers for incidental services provided to them.
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Do any portion of the seller-paid fees pass directly to the buyer in the transaction?
No. No portion of the fee is passed to the buyer or used to provide the downpayment assistance given to the buyer. Seller-paid fees are paid after the close of escrow from the proceeds of the sale of the home.
Are the fees paid by the home seller deductible as a charitable donation?
No. Seller-paid fees are fees for service, not a charitable donation, and therefore are not deductible as a charitable donation.
