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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

JUL

2008

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

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

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.

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..

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

JUL

2008

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.

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:

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.

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.

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

Amy

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

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?

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.

AUG

2008

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

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.

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