There has been a lot of talk about Down Payment assistance programs being taken away. In fact, many people are confused as to what these programs are... Most people realize that lending guidelines are changing at a pretty crazy pace. We have gone from, if you have a pulse, you can qualify; to, if you give us your blood, we "might" give you a loan. Supposedly, the DPA programs were to go away later this year. Just a little while ago, I got an email from Ameridream stating:

August 1, 2008

Last night, Congress introduced bipartisan legislation, H.R. 6694that would reauthorize and reform charitable downpayment assistance. This bill would remedy a harmful provision in the new housing law which limits homeownership opportunities for low and middle-income Americans. The legislation, sponsored by U.S. Reps. Al Green (D-TX), Gary Miller (R-CA), Maxine Waters (D-CA), and Christopher Shays (R-CT) reauthorizes and reforms charitable downpayment assistance funded in part by sellers, which has helped over one million families and individuals become homeowners since 1999. The program was eliminated by legislation signed by President Bush on July 30, 2008.

The Green-Miller-Waters-Shays plan would re-authorize and reform non-profit downpayment assistance and secure it as an allowable source for FHA borrowers. The bill seeks to ensure that providers of the downpayment assistance operate in a transparent manner to guard against conflicts of interest. The bill also includes language to ensure that FHA maintains its financial stability by permanently authorizing the Secretary to assess higher premiums to higher risk borrowers.

It is important that you contact your elected officials in Congress and tell them that you support downpayment assistance and urge them to support H. R. 6694. To reach your elected officials, please call the US Capitol Switchboard at 202.224.3121.

To learn how you can support it, visit http://www.supporthomeownership.com.

AmeriDream continues to be your trusted advisor, bringing timely and accurate information when you need it most

Ok, so I am not a lender and I have not yet studied the bill. It will be good to see what some of our lender friends have to say about this. Just tryin' to keep an eye on the ball...

Nick Bastian - Realty Executives, Tempe AZ.