I bought my first house before I became an active real estate agent. Back then, homes were affordable, the average ones hovering just above the triple digits.
I'd saved the 3% required by FHA for down-payment but didn't like the idea of being newly married, starting a new family, and using most of my savings to get a house thus eliminating a major portion of my savings at the same time.
A REALTOR here in Las Vegas (now my broker) turned me on to the Nehemiahprogram and helped me get my first house without using my savings for down-payment.
Now, my favorite programs are in trouble. If you haven't looked at down-payment programs, such as the Nehemiah program, you really should. It went by the wayside and was almost forgotten a few years ago when housing prices exceeded FHA limits. Now that many of the 100% financing programs (which weren't as strict as the FHA and have helped spike the foreclosure market) have gone away, FHA is back as a viable option for many first time home-buyers. It is also something you use to help get your first time buyers into a house and still sleep at night, since they actually qualified for it.
According to the Association of Homeowners across America, HUD's rule FR-5087-P-01, STANDARDS FOR MORTGAGOR'S INVESTMENT IN MORTGAGED PROPERTY, will eliminate the ability to use down-payment programs.
The HUD rule would:
- Force low- and middle-income families into predatory sub-prime mortgages
- Affect hard working families including minorities, immigrants, women and single-parent households who are most in need of financial help.
- Deny millions of potential homeowners the freedom and stability that comes with owning a home.
- Force the government to spend your taxpayer dollars to create a replacement program.
Over the past 10 years privately-funded down payment assistance organizations have:
- Helped over one million people become homeowners.
- Given $3.8 billion in cash for down payment assistance.
- Spurred $11 billion of direct spending with $24 billion of net economic impact.
- Never used government money or taxpayer dollars.
Yet, officials at the U.S. Department of Housing and Urban Development (HUD) have proposed a rule that will end these programs.
In this fragile housing market, such a rule would have a devastating impact on families and communities, as well as all the real estate and lending professionals whose livelihoods depend on the sale and purchase of homes.
Check out http://takeaction.ahaanow.org/ahaa/issues/alert/?alertid=9806841. Take a few moments to learn about how down-payment assistance programs can help you. Then sign the petition.
If you are a home-buyer, learn more here: http://www.getdownpayment.com/buyers/
If you are a REALTOR, get information to help your business here: http://www.getdownpayment.com/agents/
Lenders: http://www.getdownpayment.com/lenders/
Sellers: http://www.getdownpayment.com/sellers/
John Calvert
http://www.johncalvert.net, http://lvfsboinfo.com, http://whymyhomedidntsell.com
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