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HUD Grants AmeriDream Extension through February 29

By
Services for Real Estate Pros with Association for Homeowners Across America

As reported in prior posts, AmeriDream, Inc., one of the largest non-profit downpayment assistance providers has been in a legal battle with HUD over the proposed rule, issued October 1, that would essentially stop these organizations from providing downpayments to low and moderate income homebuyers effective October 30, for all but one provider.   AmeriDream immediately filed a preliminary injunction to have the date extended, and was successful!.   AmeriDream will continue to provide downpayment gifts through February 29, 2008.   

At the request of AmeriDream, HUD has voluntarily agreed today that the HUD rule banning seller-funded down payment assistance will not be effective with respect to AmeriDream until February 29, 2008. HUD will recognize all applications that have a signed sales contract prior to the effective date according to Congressional testimony provided by HUD.

This agreement applies only to AmeriDream. AmeriDream will be able to fund gift applications received until February 29, 2008, and will be only one of two entities that may offer seller-funded down payment assistance after October 31, 2007.

This agreement will facilitate litigation on an orderly schedule, and provide the Court with ample time to consider the merits of this important dispute.

As the Gold Standard for down payment assistance, AmeriDream has led this legal fight alone. We will continue to be the source of credible, reliable and timely information regarding this rule as well as all other issues regarding down payment assistance. We will also continue to vigorously defend our ability to provide down payment assistance.

This is about to be a hectic time for some of you and we are fully prepared to meet your needs and assist you with any transition issues that may arise. Please contact your Outreach Representative or Customer Service(or call 1-866-263-7437) for timely and professional service. We look forward to continuing our partnership toward increasing homeownership opportunities for low to moderate income, minority, single parent and first-time homebuyers.

Again, thank you and we are grateful for your valuable support through this process.

This information was provided by Ameridream and permission was granted to be shared.   

Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Carol, That's good news. I really hope they don't shut these programs down. I just closed an FHA with Ameridream and my closing prior to that was with Nehemiah. I believe Nehemiah already has an extension until March. Is that right?

I understand HUD's reasoning behind their action but the timing couldn't be worse. I think both of these non-profits have proven to be very beneficial and very much above board. It's all the copy cats that have muddied the waters.

Oct 22, 2007 07:48 AM
BJ Matson
The Choice Group - Olney, MD

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

Jul 22, 2008 06:21 PM