Well, that didn't last long.  House Bill 6694 has been introduced in the House to restore Down Payment Assistance Programs. 

This is information taken from an email received from AmeriDream:

"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 appears from commentary and various blogs that the elimination of Down Payment Assistance programs in last week's housing bill was simply a way to get that bill the support it needed to pass.  It had been planned throughout discussion of that bill that this new law would be proposed, voted on, and sent to the Senate before the end of September.  That would allow this new bill to take effect in advance of the October 1st deadline (currently the expected cutoff date for Down Payment Assistance programs in last week's housing bill). 

Basically what this means is that there will be a lot of uncertainty as to what programs are and will be available to first time home buyers in today's market. 

 
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2 Comments on New Bill Introduced Resurrecting DPA's

AUG
11
2008
240,122 Points 21 Featured Posts Outside Blog

From your point of view... how likely will it be that this one succeeds?

10:06am • #1

I think there's a good chance it will succeed due to the success of the program over the past 10 years, but there will definitely be some significant changes.  Your credit quality (i.e. credit score) will probably need to be, say, 660, you'll have to have two months reserves in the bank, you'll have to be on a job for 2 years, debt to income ratios will be strictly enforced, etc.  In other words, they'll want to minimize risk by increasing the stability factors involved in the underwriting decision. 

11:06am • #2

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Eric Frederick

Phoenix, AZ

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Eric at Eagle Nationwide Mortgage Co.

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