Off the wire:

The Federal Housing Administration is prohibiting its borrowers from relying on down payments financed through charities that are in effect paid for by the seller.

These programs, which often are run by legitimate charities, have helped thousands of people buy homes.

Home sellers give a donation to the charity equal to the down payment and the charity funnels it to the potential buyer. Then the seller recoups the money by charging a higher price for the home, usually equal to the down payment.

Why did the FHA decide to do this?

The Government Accounting Office found that buyers receiving assistance from the charities are more than twice as likely to default or become delinquent than other FHA borrowers.

Oh. Really?

So, basically, they’re saying borrowers who have little (or no) money to put down at closing are more at risk of not paying their loans, in the future?

Yeah, I’d buy that argument.

That’s because they DON’T HAVE ANY MONEY!

Source: FHA Prohibits Seller-Financed Charitable Down Payments – The Wall Street Journal by way of

Back to Boston condos for sale homepage

Contact me to find out more about Boston condos for sale or to set up an appointment call/text 617-595-3712.

Boston condos

Boston condos for sale


For more information please contact one of our on-call agents at 617-595-3712.

Updated:  1st Q 2018

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


Back Bay

Beacon Hill

Charles River Park


North End

South End

Seaport District

South Boston



Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



Call Now