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62 Days Until Down Payment Assistance Goes Away

Well,

I was hoping to never have to write this post. Today President Bush signed into law: The Housing Bill

which has now done away with down payment assistance programs such as Ameridream and Nehemiah.

If you agree or disagree with the politics behind the bill, it does not change the fact that this program will be gone for good on September 30, 2008.

What does this means to the folks out there that are trying to buy your first home? Well it means if you need this assistance for down payment you need to act quickly. Most lenders are taking about 30-45 days to close on an FHA loan. This means you must have a purchase contact in my opinion signed by August 10, 2008 to avoid any chance of not closing and losing your down payment assistance.

There are still other programs out there to assist with down payment and closing costs, however I felt this one gave the consumer the biggest bang for the dollar.

If you are looking to buy a home, and need these funds, please talk with a lender and real estate agent today.

AZ-BK-0904024

Posted by Gary Miljour - Mortgage Lending for Tempe Arizona on 07/30/2008 06:25 PM

Comments (15)

ameridream, nehemiah, down payment assistance, down payment assistance programs, housing bill, arizona home loans, tempe mortgage lender

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15 Comments on 62 Days Until Down Payment Assistance Goes Away

Ok,

I just did a big goof. Just spoke directly with Barry Antle at Ameridream, and the loan has to be fully approved by September 30, 2008. See attached:

We are "business as usual" today. With the passage of the Housing Bill from last week, which is awaiting the Presidents signature to be enacted into law, the DPA Industry will be eliminated. The cut-off date as we have heard is established from HUD is currently October 1st, 2008. We understand that all deals with DPA programs must be "Fully Approved" prior to the cut off date and those that are will be honored by HUD and fund those FHA transactions.

We appreciate your continued support of our Ameridream programs!

Barry Antle

Regional Account Manager

Atlas Professional Solutions

P: 480-861-6059

bantle@aps-ameridream.com

www.aps-ameridream.com

Promoting the AmeriDream programs nationwide

07/30/2008 06:32 PM

by Gary Miljour - Mortgage Lending for Tempe Arizona (Cherry Creek Mortgage Company)

That's putting a short leash on things isn't it? I just pushed an FHA through in 39 days... barely.

07/30/2008 06:38 PM

by Fairbanks Real Estate Broker Jesse Clifton (Jesse & Kathy Clifton, REALTORS - 907.699.6024 - )

Jesse,

Its a very short leash. Actually if they are approved prior to 9/30/2008, you can use the funds based on what Barry shared with me.

07/30/2008 06:42 PM

by Gary Miljour - Mortgage Lending for Tempe Arizona (Cherry Creek Mortgage Company)

I thought it was extended to Oct. 10th.. with a caveat that they may not eliminate these programs. I heard this through my mortgage guy..

07/30/2008 07:34 PM

by Lori Lincoln- Taunton-Fall River MA Assonet MA, Rehoboth, Dighton, Swansea (Keller Williams Realty/Realtor Taunton and South of Boston)

And for what reason? Why cut out programs to help the first timer. It makes no sense to me.

07/30/2008 07:51 PM

by Robert L. Brown~Grand Rapids Real Estate Flexit Realty, West Michigan (www.mrbrownsellsgr.com)

The DPAs were not perfect, but they were one tool to help. Don't count on there being a relief this time. I expect the program to be gone, no reprieve.

07/31/2008 12:55 AM

by Fred Chamberlin - Eugene/Springfield's #1 Experienced FHA Mortgage Consultant (Alpine Mortgage Planning)

Lori- That is Not correct, the housing bill that was signed into law yesterday had language in it to eliminate down payment assistance programs being used in conjunction with FHA loans. The loan must be approved by 9/30/2008 and close soon thereafter. I would read the actual bill. Here is a link: H.R. 3221:

07/31/2008 10:31 AM

by Gary Miljour - Mortgage Lending for Tempe Arizona (Cherry Creek Mortgage Company)

Robert- I agree with you 100%. I heard that 40% of all FHA loans in the last 12 months used this program. I am wondering if FHA and the powers to be really thought this one through. Thanks for the comment.

07/31/2008 10:32 AM

by Gary Miljour - Mortgage Lending for Tempe Arizona (Cherry Creek Mortgage Company)

Fred- I have to agree with you. I just see things getting even more conservative in the mortgage lending environment. Thanks again for the comment.

07/31/2008 10:33 AM

by Gary Miljour - Mortgage Lending for Tempe Arizona (Cherry Creek Mortgage Company)

I think every buyer we've had in the last year has used DPA...now what will we do??

Amy

07/31/2008 11:03 AM

by Amy Salisbury (Leading Edge Properties)

Only 172 more days until George Bush goes away. That should help all of us not just the loan and real estate industries lol.

07/31/2008 11:22 AM

by John Guiney e-PRO, CBR (Keller Williams Realty)

Amy- Bond programs and educating buyers to save up down payment. The buyers can still get the down payment gifted from family, but no DPA. Does that make any sense?

07/31/2008 11:50 AM

by Gary Miljour - Mortgage Lending for Tempe Arizona (Cherry Creek Mortgage Company)

John- I would not go there about politics, this is not a political statement. Bush actually did not support this bill by any stretch of the way.

07/31/2008 11:51 AM

by Gary Miljour - Mortgage Lending for Tempe Arizona (Cherry Creek Mortgage Company)

Gary - I just got an email from an originator friend of mine in Michigan and he attached a copy of HR6694 which was filed on the 31st. Seems that DAP is really trying to stay alive.

Don't hold your breath...this could take a while.

Paul Dunn
Tucson's #1 FHA Mortgage Loan Originator
Arizona USDA Rural Home Loans

08/02/2008 11:08 AM

by Paul Dunn -Tucson's FHA and USDA Rural Specialist (First Priority Financial)

Paul- Yea I saw that today. Ameridream has a piece on it at their website: HR6694, lets get behind it. Knee Jerk reaction by our politicians during an election year? Probably, but again it will take awhile if this gets passed. I am a supporter of DPA.

08/02/2008 12:54 PM

by Gary Miljour - Mortgage Lending for Tempe Arizona (Cherry Creek Mortgage Company)

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