Maybe you have heard the news, maybe you have not...Seller funded Down Payment Assistance is scheduled to "exit stage left"on October 1st of this year. Depending on your market, you may think this may not affect you. Guess again. This travesty will continue to effect the downward spiral in the housing market for several reasons, including reducing FHA loans by nearly 40% (approximately that many loans or 50,000 families per month), locking out families from homeownership & keeping them in the renting cycle.

As many real estate professionals will tell you, homeownership promotes social stability, financial independence, less crime, a sense of community & personal achievement & many other intangible benefits. The elimination will unfairly target the most vunerable: minorities, first-time homeowners & women-headed households.

Now I know some of you are thinking (but may not say it) - well, they need to save more money for a down payment or their credit should be better. To you I say this: You've been listening to the wrong people. They would have you believe the many (& I mean there's a ton) misconceptions of seller-funded DPA. Nehemiah, Ameridream & other similar DPAs are NOT for dead-beats. They are for credit-worthy borrowers who want to save their reserves instead of spending it all on the down payment. It is not wrong or ill-conceived to want to have a rainy-day fund instead of having $0.00 in the bank, especially in this economy as it stands today. In fact its pretty smart. Most financial savvy people making 6 figures or more have much more in reserves than that. Why should we think those with less to work with should have nothing to fall back on?

Another misconception: "Why should I have people use my tax dollars to buy a house?"Guess what - tax dollars aren't used at all! Seller-funded DPAs, such as Nehemiah, are private non-profit corporations. In fact, more revenue (via taxes) is generated for state & local governments instead of less (or none) for areas that may not have as strong a tax base, thereby increasing value in lower-income communities.

Maybe you still don't buy it. Maybe you've been told, "Oh, so many people foreclose when they get DPA."

Sorry. Wrong Answer. Buy another vowel...

Let's check with the General Accountability Office (GAO) in Washington: "Better than nine out of 10 Americans who purchased their homes with DPA are succeeding in meeting their payments."

Sounds like pretty good numbers to me, Pat. I'd like to solve the puzzle!!

Well, unfortunately, we won't be going to the prize round if Seller-Funded DPA takes a powder. There will be just less people in the housing market. Those numbers don't sound so good.

If you'd like to help keep DPA go to www.getdownpayment.com for more on what you can do.

Calling all loan officers!!!

Are there any stated income loans you have done  past 6 weeks?  6 months??  Is stated income dead as we know it?

I am in an interesting area where the spectrum of people range from upper middle-class to immigrants searching for homes.  Many brokers are having a difficult time placing no doc, no ratio stated income loans due to newer restrictions.

We've been able to help & have also assisted brokers who have been having these problems by guiding some of these clients toward FHA loans, among others.  I have found many brokers either are not licensed or do not want to get involved in government programs.

As tight as lenders are right now, government is one of the best avenues available in this market.  But I'm curious...how many of you loan officers are still placing stated income???

Any takers???

As I learn more about this industry & profession I have joined with my colleagues here on AR, the more encouraging it is to see how many programs & offers of assistance are available to our clients.  The Nehemiah Program is one of those programs available to lower to middle income buyers looking for down payment assistance.

From its website, The Nehemiah Program:

"...serves as a catalyst for economic empowerment and wealth creation by expanding opportunities for responsible homeownership, affordable housing and community revitalization.

To fulfill its Mission and Vision, Nehemiah Corporation of America has developed a number of programs and affiliate organizations to serve not just the immediate needs solved by homeownership, but the longer term needs of urban areas, low- and middle-income families, and their surrounding neighborhoods. These programs include The Nehemiah Program®, Nehemiah Community Reinvestment Fund^TM, Inc. (NCRF), Nehemiah Community Foundation^TM, Inc. (NCF) and Nehemiah Urban Ministry Initiatives (NUMI)."

Then, I learn the powers that be (read HUD & the federal government) are looking to eliminate a privately run DPA program.  Does this make any sense to you???  Why eliminate a program that uses private funds & instead depend on tax dollars (read you & me & your 1040) to fund public DPA programs.  This is absolute nonsense.

Help save a good program, whether you use this program or not with your clients.  This program has helped hundreds of thousands of buyers who would not have had the money to close on their homes.  Link here to find out more on what you can do!

Well, here I am.  How does that saying go, "wherever you go, there you are???".  This is my first blogging experience as an AR member & I have just started out with Equity Mortgage, LLC as a (drumroll, please) Loan Officer.  This company is offering a great opportunity for growth & I can't wait to get a head of steam going.

I have to say I am very excited & am looking forward to learning all there is to know about the mortgage lending trade.  FHA's you say.  What's that???  HUD, 80/20, Fannie Mae ----Aunt Mae??? (I'm only half-kidding).  There's a lot to learn but I'm truly looking forward to it.  I plan on writing a blog every week or more often as I find out something new & exciting to share with everyone.

Any tips from you veterans out there?  I'm just getting my feet wet but I can already see how this career can be very lucrative.  What were your first steps?  Learning every loan product at your disposal?  Developing business relationships with builders, realtors, etc??

Or that statement everyone makes at some point in their life: "If I knew then what I know now...."  Thanks for your help, guys & gals!!