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down payment assistance programs: Down payment assistance programs get a stay of execution - 03/20/08 02:41 PM

In the past year I have had three buyers getting FHA loans, use a down payment assistance program and I have been hearing for the past six months that it was on the chopping blocks!
Well today my mortgage broker called and told me they have been saved and will continue to be available to buyers. From what I understood, HUD's argument was that these loans had a better chance of default and were artificially inflating prices. I personally didn't think so! The reason I didn't think so was because if the house didn't appraise, you couldn't use it.
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