The Latest Craze Employer Assisted Grants

Written By: Glenn Michaels, Op-Ed Writer

HUD’s FHA and Fannie Mae allow employers to donate funds to employees to assist in the purchase of their home.

Now there are two websites owned by the same parent company to take advantage of this guideline. The parent company is a recognized 501 (c) not for profit corporation. The two websites and 

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How the program works:

The HAC Home Grants Program is a down payment assistance fund where employers contribute a predetermined amount of funds into an Employer/Employee Housing Trust Fund Account. The participating employer makes a lump sum donation /contribution to the administering non – profit organization in to the special housing trust fund.

If a Home Grant applicant aka employee is employed with a corporation that has made a charitable donation to the HAC Home Grants program and has set up a special housing trust fund account fund account, the employees of said corporate donor then would be an employee that is eligible to participate in the Home Grant Program. The Home Grant program is limited to a maximum of ten thousand dollars ($10,000.00) per employee.

The Home Grant can be used for the following items:

• Down Payment “the required cash down payment”
• Closing Costs “Either part or all of the closing costs”
• Homeowners Insurance Premiums
• Property Tax Escrow/Impound Account

All funds will disburse at the loan closing or property settlement. No funds will be disbursed prior to the loan closing. The Home Grants program is a grant/gift that is indirectly from your employer to assist you, the employee in purchasing a home. The Internal Revenue Service requires HAC to issue you an income form for the amount of the grant/gift.

All employees that are employed with a participating company need to register at either web site to participate in the Home Grants Program and receive a home grant. You, the employee, will also be required to access other pages to make you a better home owner.

A Home Grant pre-approval certificate of approval will be issued in the amount of the Home Grant that you are approved for as the Home Grant applicant that complies with the Home Grant program guidelines. The Home Grant applicant should print a copy of the Home Grant Pre – approval certificate and furnish a copy to the mortgage lender and to the Real Estate Agent that you are working with to locate a home.

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The grant funds will not be disbursed until the mortgage lender has issued a mortgage loan commitment with the Home Grant be accepted as a condition to close the partipating mortgage lender for your mortgage loan in the amount necessary to purchase the property.

If your employer does not currently participate in the program you should have your Human Resources Department and/or company owner look into the program for your company and its employees.

About The Author

Glenn Michaels - As an op-ed writer, Glenn Michaels is a mortgage underwriting instructor for CampusUnderwriter ( As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years. 

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