Down payment assistance programs get a stay of execution

Real Estate Agent with Realty Pro Oregon, LLC 200311024

 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.

Now, my buyers who used the program had the 3% down for the down payment required by the FHA, but I thought it would be a better use of their money to save it as a rainy day fund incase they got in trouble. This would lesson any risk of having them go in to default on their home loans.

I understand the FHA and HUD's argument, but I think if they want to change the rules, make it so that people who do use down payment assistance have a reserve and make it a win-win for everyone involved. Most people live month to month and if they get in trouble they don't have anything to fall back on and this is a program that can help.

I understand wanting to have a higher PMI, if they use such a program, but we need to figure out a way to get lower income people and single parent households into the dream of home ownership, and these down payment assistance programs were great for doing just that!

So, thank you courts, for seeing the light and giving the down payment assistance programs a stay of execution.

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739





Posted by

Todd Clark (Broker/Owner)
The Friendly Home Team
Realty Pro, Oregon LLC
Phone: (503)524-9494
Fax: (503)746-9573





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 I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.


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Natalie Langford
Realty Negotiations - Winchester, VA
Winchester, VA Real Estate
Great news!  And, I love your buttons!
Mar 20, 2008 02:45 PM #1
Anthony Fico
Atlas Adjustments LLC. - White Plains, NY
Interesting post Todd. Which down payment assistance programs are you referring to? Nehemia?
Mar 20, 2008 02:47 PM #2
Bart Whitmore
Keller Williams- Louisville - Louisville, KY
Real Estate Agent
Todd I visited my Mortgage Broker today and he told me the same great news.
Mar 20, 2008 04:29 PM #3
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ


I love those programs that enable first time homebuyers to achieve the American Dream!!! Thanks,   Fran

Mar 20, 2008 06:50 PM #4
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin


Nice post and update on this situation. I heard from my mortgage broker that stated income is a thing of the past which will effect me and my home buying. Thanks for the comments on my blog.

Mar 21, 2008 05:38 AM #5
Debbie Malone
Londeree's Real Estate & Property Management - Lynchburg, VA
From Lynchburg To The Lake (434) 546-0369
Todd, I've got my first closing with a Genesis FHA today. This has been the smoothest transaction to date and I have to credit the lender, she knows her stuff.
Mar 21, 2008 08:15 AM #6
Judy Tuscano
Prudential Verani Realty - Nottingham, NH
NH Real Estate Professional
Todd _ I think it is great for 1st time homebuyers to still have this program.
Mar 21, 2008 08:31 PM #7
The Friendly Home Team
Realty Pro Oregon, LLC - Beaverton, OR
Brokers - Oregon / SW Washington Real Estate

Natalie - Real easy to make, I wrote a post about how you can make some yourself... They are pretty easy.

Anthony - Nehemiah and Ameridream. (Both which are gone now)

Apr 20, 2009 04:56 AM #8
The Friendly Home Team
Realty Pro Oregon, LLC - Beaverton, OR
Brokers - Oregon / SW Washington Real Estate

Bart - I actually got 4 more closes out of these programs before they went away again permanently.

Fran - These programs were much better than the tax credit and didn't involve my tax money!

Apr 20, 2009 04:58 AM #9
The Friendly Home Team
Realty Pro Oregon, LLC - Beaverton, OR
Brokers - Oregon / SW Washington Real Estate

Alan - So many home buyers will no longer be able to buy now, which is such a shame, they more than qualified, but just couldn't come up with the down paymens required.

Debbie - These programs were awesome and helped so many.

Apr 20, 2009 04:59 AM #10
The Friendly Home Team
Realty Pro Oregon, LLC - Beaverton, OR
Brokers - Oregon / SW Washington Real Estate

Judy - I think it was also, it is a shame the government didn't see the value in these programs.

Apr 20, 2009 04:59 AM #11
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The Friendly Home Team

Brokers - Oregon / SW Washington Real Estate

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