Q: Is DpFunder affected by the rule eliminating Down Payment Assistance programs?

A: NO! DpFunder is an earned income program and not a gift program. We sign up dealers that sell memberships and earn a commission that can be used for anything including the downpayment on a home. HUD recognizes earned income in their published rule. Click to see the rule language.

Click Here To See HUD's Opinion On EIP

Q: I just found a program that is similar but it appears "cheaper and easier" for my seller. Why should I use your program?

A: As a real estate professional or mortgage lender, you are responsible for insuring that a program is legal.  If the seller of a property is receiving nothing of value for the fee being paid, then it is probably fraud.  If the buyer is receiving a commission for not actually doing anything then it is also probably fraud.

The laws surrounding federal mortgage fraud provide for severe penalties, including large fines and imprisonment.  You, as a real estate professional, do not want to be a party to fraud.  The Owners Alliance is a real association that provides real and substantial benefits.  This is not merely a "back door" method to pass money from the seller to the buyer. 

The primary goal of DpFunder is to increase the membership of Owners Alliance, not to provide down payments to borrowers.  We have simply found, that by promoting this program to property buyers, it is the fastest and most effective way we can grow the membership of Owners Alliance.

Do not be fooled by a "cheaper and easier" knock-off of our program.  Check it out thoroughly before doing a transaction with them.

Q: Why is this not considered a "seller concession"?

A: There are several reasons why this is not a seller concession.  We are not parties to the transaction.  This is completely outside the real estate transaction.  We sell memberships to the Owners Alliance, a real and valuable benefit to any property owner.  Anyone can be a Dealer and anyone can sell association memberships.  This is very similar to a real estate agent using his commission at closing as a down payment.

Sellers are not paying money to be passed through to the borrower, like in non-profit gift programs.  Sellers are buying a membership for their property in the Owners Alliance.  This is no different than a borrower asking for a warranty to be purchased on a home they are buying.  

Q: Can't I just use a seller concession to cover the buyer's down payment?

A: No.  Typically, a seller concession can be used to subsidize a buyer's closing costs, but can not be used for the down payment.

 Q. What benefit does Owners Alliance give to property owners?

A. The Owners Alliance provides discounts and rebates on a continually growing variety of products and services. In addition, Owners Alliance is located in Washington DC and gives property owners a voice at our nation's capitol.

 Q. What type of mortgages can be used with the DpFunder program?

A. All kinds of mortgage loans.  Ordinary conventional loans, commercial loans, government loans, sub-prime, non-conforming and private loans will work with DpFunder.  There are no restrictions on a buyer using earned income for their down payments.

 Q. Why is the DpFunder program not a party to the "sale" or transaction?

A. Global Direct Sales provides management and marketing of the DpFunder program for Owners Alliance. Global Direct Sales, LLC pays a commission to our dealers who sell an Owners Alliance membership. This is earned income and the dealer can use those funds for whatever they please.

 Q. Do I have to use the commission to buy the property?

A. No. Once the property owner completes enrollment, you will have earned your commission which you can use any way you please.

 Q. Do I have to pay taxes on the commission?

A. Yes, these funds are earned income and the dealer will receive a 1099 and will be responsible for all taxes. Please consult a tax adviser.

 Q. My lender requires proof and source of funds. How do I do this as a dealer?

A. As a dealer, you will receive a paycheck stub and commission statement. These can be used as proof and source of funds.  A VOD (verification of deposit) can be provided by the bank.

 Q. Can I earn more than one commission?

A. Yes. Once you are a dealer you can sign up as many members as you please and receive the same commission structure.

 Q. How long does it take to process?

A. We can complete the process in about a day but the lender usually requires more time to verify funds.

Q: What does the property owner really get by joining?

A: Depending on the program, the seller gets to enroll his property into a three, five or ten year membership in the Owners Alliance. Owners Alliance is a defender of property owner's rights and provides a bundle of savings programs to property owners.  The membership conveys with a property.  Therefore, a member property should be worth substantially more, than an identical non-member property.

The property owner can advertise his property as being an Owners Alliance member property.  The savings offered by membership should appeal to a larger pool of property buyers.  This advantage should allow Owners Alliance properties to sell faster than non-member properties.

Q: Can DpFunder only be used on loans that allow non-seasoned funds?

A: No, buyers can use earned funds on any kind of mortgage product.  Seasoning is required for savings or other funds.  Seasoning is never required on a borrower's paycheck.

As a Dealer for DpFunder the buyer will receive a commission for selling memberships to the Owners Alliance.  This is earned income.  The Dealer will receive a pay stub and at the end of the year receive a 1099.  This is taxable income to the Dealer.

Q: How is this different from the Nehemiah, AmeriDream or Neighborhood Gold "Gift" programs?

A: We are not "gifting" funds to homebuyers.  We are simply paying commissions to our Dealers.  Conventional loan lenders consider any fee being paid to a non-profit, that provides the home buyer a gift, as a seller concession.