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DPA is Gone...oh well?

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Mortgage and Lending

I have a drawer full of clients that, without Down Payment Assistance, would be in an apartment still.

I say this because, as DPA is a loophole in the system, it is a great way to get 100% financing for good people that truly need and appreciate the opportunity to own a home of their own.

I just wrote a post 10 minutes ago that was in response to an original "DPA is gone - oh well, let's be positive about it" - I thought I would share:

Here's 2 main reasons to get behind H.R. 6694:

1. FHA marketshare is reportedly over 50% right now, and according to FHA - DPA was involved in 40% of transactions.  So we are to rely on Bridal registries, and Church or Employer "gifts" to supplement the giant reduction in otherwise qualifies applicants (families).

2. It has nothing to do with performance - FHA's agenda was to implement a 100% program that, as of 8-28-08, doesn't exist.

So, my proposition is to do both...let's be positive and adapt when necessary, but let's also take the reigns when we have the opportunity to make a difference.  What can I say, I'm not the "grin and bear it" type of guy...Please write/email your law makers!

As always, I loooove FHA, but this could be huge - watch video from Ameridream www.HendrickTeam.com/SaveDPANow

Matt Hendrick - www.TexasFHAExpert.com

 

Comments(3)

Chris Brown- Florida Home Loan Specialist | Certified Mortgage Planner
Chris Brown | Certified Mortgage Planners - Orlando, FL
Chris Brown 407.367.2974

if something doesn't step in, it likely may stall out any [slow] momentum that may have been being built [phew say that 3x fast]...

 

... FT home buyers are going to have to be the catalyst to kick start things.

 

Chris the Implementer

Aug 28, 2008 10:28 AM
Matt Hendrick
Southlake, TX

Yeah - honestly there's not much to the bill:

1. Get DPA back

2. "Oh yeah - do that risk based thing that FHA put in place on July 14th."

It seems like that was the only way to have it taken seriously. FHA's answer to that was, "OK for get the risk based thing - let's go with 1.75% across the board instead for the UFMIP.  I understand they need to adjust based on risk, but there's already a new fico adjustment upon delivery.  That's just insult to injury when you consider the FHA is self sustaining and does quite well already.

They definitely jumped the gun on the Housing "Rescue" Act.  Hopefully, congress will realize the impact this will make on their constituents not mention the industry.

Amen on FTHB - Spread the word, my friend!

Aug 28, 2008 10:43 AM
Kevin Sandridge
Signature Home Funding - Winter Haven, FL
Winter Haven Mortgage Broker

Matt - big things come in small packages, and this was a great post!  We need to call.... NOT write or email our respective US Reps to let them hear our voices on this issue.  Emails and letters are a dime a dozen these days.  These Reps know how easy it is to send a preformed email.  Hell, they send them to us!  OK - their staffers send them to us. 

Please make the calls you can to your folks from Texas, and encourage your colleagues to do so as well! 

 

Kevin

Aug 28, 2008 03:11 PM