Update: Hot off the press. FHA has to continue to accept loans with Down Payment Assitance.

 For all you real estate agents and lenders we're still in the game with Down Payment Assistance for now. Sometime this is the only way a potential buyer can go. So for now were still in the game. Keep on Selling!!!!!!

Judge Friedman rules that FHA must continue to accept loans with Down Payment Assistance.

Gaithersburg, MD – United States Federal District Court Judge Paul L. Friedman today ruled in the case of AmeriDream v. Jackson that the Department of Housing and Urban Development cannot implement its regulation on down payment assistance.

Judge Friedman agreed with AmeriDream’s position that there was a “substantial likelihood” that the regulation violated applicable law. Judge Friedman further stated that the regulation lacked a “reasoned analysis” and was based on “flimsy” support. Judge Friedman also questioned whether HUD acted appropriately in issuing the regulation in view of a published report that Secretary Jackson was committed to that course of action regardless of whatever public comments HUD would later receive. In view of those shortcomings and other considerations, Judge Friedman issued an injunction, effective immediately, preventing the regulation from taking effect.