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No more Ameridream!

A while back I posted a blog requesting suggestions for downpayment assistance programs other than FHA programs. I got a couple of responses, but not many. Now FHA is discontinuing it's down-payment assistance programs like Ameridream! What's a struggling first-time buyer to do? How are the rest of you taking this news?

Posted by Nola Comingore on 10/20/2007 02:10 PM

Comments (13)

fha, ameridream, firsttime buyer, down payment assistance

13 Comments on No more Ameridream!

OCT

2007

How about your cities in your area. I know were I am located we have alot of programs in our individual cities that have program for first time home-buyers. One of our big programs is our CHIP programs. However, I am still seeing 0 down signs all over N.E. Ohio.

Just look back to what we did before all the charity and gift programs. FHA with a parent gift of 3% with the seller paying the closing costs, VA for those who earned this benefit, buyers can tap into retirement funds, buyers can take a personal loan in advance of a home purchase, refinance a car or truck, sell something they own of value, have their parents use the family home as the downpayment through a bank...the list can go on and on depending on how creative you want to be. Buyers have lots of options and they need our help more now than ever before.

In my area there are FTB programs from the city and others from the county. Unfortunately I have heard that the FTB program out here is dropping from its 100% to 95% LTV. I think the only other option will be sellers carry 5-10%.

In Ulster County, New York Rural Ulster PReservation Corporation provides down payment assistance. I have not used it but have heard great things about it. Dutchess County has a program as well.

Have you ever heard of Rural Dev. It is a 100 percent and no pmi and also www.naca.com

We have a State down payment assistance program as well as various City DPA programs in Oregon. I see employer down payment assistance programs still being allowed, too.

OCT

2007

Wow, you guys are great! Thank you all for your input. You've all made me think of things I hadn't before, and I really appreciate it. I guess there must be a lot of help out there with local government, if you just know where to look.

Michelle, I have not heard of Rural Dev, but would definately be interested in learning.

Sam, thanks for reminding me of the basics. I've only been licensed 5 years, and some of the stuff you mentioned I have never seen commonly used, but creativity it what I'm after, so thanks!

OCT

2007

Nola, Assume you got a notice that Ameridream got an extention till 2-29-2008. Nehimiah has until 3-31-2008. Hopefully the others will get extentions until the 100% Fha option is approved by congress.

Tim,

Yes, I heard. Thanks for pointing it out though, because I think it bears repeating.

JUL

2008

Save Ameridream program
If you haven't done so, go to this website, http://www.rallyforhomeownership.org/

It only takes 30 seconds. This form will go to your local Congressmen and Senators.
CONGRESS MEETS ABOUT THIS TODAY!

HUD should modify to lessen the risk BUT don't get rid of it. This is one of the last programs out there right now that can get buyers into a home with no money. (They still have to credit and income qualify)

http://activerain.com/blogsview/605114/Down-Payment-Assistance-Congress

JAN

My wife and I made a contribution to Ameridream and we were told repeatedly it would be 100% tax deductible. Now, at tax time, we find out it is not tax deductible at all. When we looked at the fine print, they listed it as a service fee which is not deductible. They absolutely deny that they ever claimed it was deductible and will not help us. No wonder HUD is trying to shut them down.

APR

Jeff,

That is exactly what happened to us. We were told our "contribution" to Ameridream would be tax deductible. I wish we had gone to a lawyer and not been pressured by time without researching it more. It does not help us to claim the contribution as a seller expense because as a married couple, that only helps if you make over half a million dollar profit on the sale of your home. It really stinks that we were told it was a tax deductible gift. Never trust realtors or title company reps. who just want to push the sale through. Get your own lawyer to look over everything! We learned our lesson the hard way and took below the appraisal value.

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