Last week the President signed H.R. 3221 also known as the Foreclosure Prevention Act. There has been a lot of coverage about this, and of course a lot of debate on whether this will truly have any effect on the market, as well as whether anybody should be bailed out.
What doesn't get the coverage, are the many other facets of the bill. There are many aspects, positive and negative (depending on your perspective), but one that has received some outcry is the virtual elimination of Down Payment assistance. DPA programs like Ameridream and Nehimiah have aided about 1 milion families since 1999. These are not the problem loans like no down, no qualifiers that have caused all the turmoil, but loans for folks who don't have a downpayment, but are otherwise qualified. A new bill was just introduced, that seeks to bring back DPA, with reforms. Not having DPA, will undoubtedly stall any recover in the real estate market, as FHA loans have increased, in part due to more affordable homes and 1st time buyers taking advantage of the prices.
Check out the video below for more info, as well as these links for info on each bill.
3 Comments on HR 6694 - Will Down Payment Assistance Return
AUG
08
2008
It is essential we protect a buyer's ability to become a home owner, not hinder it. It has been said that since 1999, over one million Americans have used programs such as Nehemiah and AmeriDream to get their first homes. That's one million tax-paying citizens who fund your local police, schools, roads, communities and other essential infrastructure.
Many of those purchases involved newly-built homes which gave needed revenue to the construction, transportation and materials industries.
Families who own a home are not exposed to the crime prevalent in apartment complexes.
Home-ownership in many parts of the country is down, this needs rectified.
Home buyers who put thousands of their own dollars into a purchase are less likely to have savings to carry them through a rough period brought on by illness or temporary unemployment.
Please ask yourself a simple question: would you rather live near more apartments or home owners?
Dear California State Legislators and Representatives;
The Nehemiah Program made the difference between our families’ being able to get into a house or spend another year (or more) waiting and saving up – we didn’t have relatives who could help us financially and our special circumstances
with health and disability issues put an additional strain on our abilities to make a down payment. The Nehemiah Program “leveled the playing field” for my family and gave us the assistance we needed to get the housing we needed and could otherwise afford. Without this assistance, people of modest means who have been struggling to afford a home in California would be forced to continue to wait – resulting in even deeper losses in the housing market, and an even longer recovery time for California’s stressed economy.
I have to believe that programs such as Nehemiah will be of great benefit to all Californians and should be extended as an important part of overall efforts to quickly recover from the economic and housing crises that threaten us all.
I hope the legislature will pass HR6694 to modify HR3221 by further extending the Nehemiah Program for down payment assistance in the interest of helping otherwise eligible Californians acquire affordable housing and minimizing the effects of recent economic downturns.
Sincerely,
Well said. Hopefully with the RTC legislation finally settling this week, perhaps the congress will go back to considering HR6694 promptly? The House has moved it out of committee but obviously they have been stalled by the most recent crisis.
I am hearing from lenders that it might be December before we could see DPA return in new form. At least there is speculation for its return.
Meanwhile, my lender partners and I continue to work with buyers who qualify under the USDA Rural Housing Assistance program that still allows for a contribution up to 6% of downpayment assistance. Areas such as Anthem, New River, Maricopa, parts of Surprise, Waddell, Buckeye are considered in the regions where this program can be applied. This is a program agents might want to query their lender partners about. Might be an option for buyers that are buying in rural outskirts of the county.
Let's hope for the best on DPA.
Best,
Todd Hillman
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It is essential we protect a buyer's ability to become a home owner, not hinder it. It has been said that since 1999, over one million Americans have used programs such as Nehemiah and AmeriDream to get their first homes. That's one million tax-paying citizens who fund your local police, schools, roads, communities and other essential infrastructure.
Many of those purchases involved newly-built homes which gave needed revenue to the construction, transportation and materials industries.
Families who own a home are not exposed to the crime prevalent in apartment complexes.
Home-ownership in many parts of the country is down, this needs rectified.
Home buyers who put thousands of their own dollars into a purchase are less likely to have savings to carry them through a rough period brought on by illness or temporary unemployment.
Please ask yourself a simple question: would you rather live near more apartments or home owners?
Please support H.R. 6694