RON......  my pleasure... I hope many can make it....  Yes, there are positives and negatives to this... but I feel that the positives out way everything else, as long as we review the true facts...

DONNA.....  thanks for the polite comments... and there is a reason why I support this, the DPA's...  and we need to stand up and voice our reasons.... thank you

THESA....  thanks for your support....  I just think the public and the politicians need to understand this and not just the basic foreclosure figures... just my .02.

PATTY & SCOTT.......  I am looking forward to voicing my concerns and opinions... I hope many chime in and listen....

JUSTIN....  I know you are in the area...about 30 minutes away and that would be great,  Please call me on this.... thanks and thanks for your support!!!

CARL.....  I hope so... time will tell.. but my .02..... I think we can make this work with some provisions...  I know from your website, that your voice can be heard... spread it..

MAKIN MONEY.......  that is one sad comment.  A comment like that is what has helped contribute to the mess that we are in now... that kind of attitude. I worked with a few loan officers in the past, that would take a client subprime. I would be like... that sounded like a true FHA loan. Their response?  Well, it's easier to do a subprime loan than a FHA loan. What about the client getting the best possible mortgage and the best pricing?  Again, very, very said.  Hence for the reason why you were anonymous?   

Overall, I wonder if you even know how mortgages work.  Let alone that each client is different and so is each mortgage. Maybe it's a combination of a few things. That you don't know and that you are an irresponsible loan officer or realtor, that has contributed to this mess.  hhhhmmmm

CHRIS......   yes, there is an underlining agenda with HUD here... The Senate shot down the DPA programs and HUD is backing them.. Why would HUD do this?  This is not my opinion, but information from a few inside of HUD and with HUD connections. HUD wanted 100% financing, but this was shot down by congress a year ago. It made it half way through. So, HUD would like to get into the DPA programs. Why would it matter either way?  Think about it, more money and income for HUD.  If they did 100%, they could make more with more insurance money, from the loans being insured. If they went the DPA route, they could make money off of this, just as the current DPA companies do.  Money follows money.

GRACE......  thanks... please pass this onto everyone. Even if they can't make it to DC, get the word out to others, hoping that they can make it.  Just making people aware of this and to show support is a great start.  thanks

JASON....   the emotional fortitude?  Please don't mix that with passion.  Passion and emotion can be confused and at the same time, be one in the same. At the end, calmer heads will prevail. I always look at things and bring up the positives and negatives. And I didn't do it in this post for the most part, trying to keep it short. But there are negatives that come with DPA's.  A good soldier will always use that to their advantage. A good athlete will do the same.  And I will do the same....  the ending result that the positives out-way the negatives on this subject. But you have stubborn people that don't want to hear it and fight a cause on one belief, ignoring the rest. That in itself will hurt this economy even more. And in all honesty, do you think we should allow the gov't meant to step in? What about allowing the market to correct itself by itself?  Which do you believe and please, only pick one.

You said...  "Down Payment Assistance isn't as bad as the detractors say, at least in my opinion.  It has its place.  However, I also see it as being a device that inflated sales prices because that very assistance was being paid by the seller to a 'Non-Profit Organization'.  I love that term:-)  They pass that onto the buyer." 

My opinion?  Who cares if it has a cost attached to it. Don't you need to make a profit?  I know you aren't calling yourself a non-profit. But let's not judge without knowing the facts. Now, I don't know about all of the DPA programs.  But do you know that Nehemiah gives back to the communities also?

• http://www.ncrfund.com/
• http://www.nehemiahcorp.org/info_ncf.cfm
• http://www.urbanministries.org/
• http://www.nehemiahcorp.org/info_NPHDC.cfm

In regards to your 100% question. They have tried, about 3 years ago. Congress shot them down about a year ago. And this could be very long, but the risk becomes greater. There is no equity position then, at 100%. Think about it, at least the way it is set up now, you still need about 2.25% as a down payment. These DPA programs just allow the money to come from the seller's home. The bottom line is that it doesn't matter where it comes from, but that you still have some equity, than a true 100%. Now, this could be argued some, because you would raise the price of the home to give back to the buyer. Example...

   Example...  if I were to buy a house that was listed for 200k and buy it for 190k, but with no help from the seller, then my equity position after all said and done (after down payment & financed MIP), my balance would be $188,510.  If I bought that same home, but asked for $8,000 in help.. and raised the price to $198,000, my end result would be a balance of $196,448.  hhhmmm... My balance is still lower than what I bought the house... and it all comes down to the real fact that if that house appraises for 200k. If it's a real and legitimate appraisal supporting a 200k value, then why is everyone fighting the issue of raising the value?

Jason.... let me present another issue then, that isn't brought up at all. What do you think happens when sellers give the 6% seller help? Don't you think prices are raised at times also?  Wouldn't that be the same thing?  Why aren't advocates jumping all over that then?  My opinion?  Because they don't break down the mortgage and how it works. All components, front and back... everything that is involved. Just my .02 on that one. Again, I would love to go into detail on that one, to make more sense of it.

About non-profits... I am with you on that one and that is a whole different topic... but again, so many try to dwell on that and the $499 fee.  Come on people, get off the high horse. I see real estate company's now charge a flaty fee of $250, even to the buyer. What is that?  I don't see people attacking that.  Or administrative fees. Jason, what about your commitment fee of $825 on every deal?  Okay, so you aren't a non-profit...  but why attack the issue with DPA companies, when we should be looking at the greater good. If someone has a problem with it, then make the seller pay for it. That fee can be charged to the buyer, seller, or the lender.

As for the education classes?  Great point... Nehemiah offers this...  http://www.getdownpayment.com/buyers/hec.asp?tab=1   But it's not mandatory by Nehemiah nor HUD.  Maybe HUD should step up and make this a requirement????   In regards to reserves....  you and I have talked about that. I have always said that they should make it a requirement that the buyer has 2 or 3 months in reserves... and that it has to be saved prior to settlement and not part of any gift. But you know what.... you can game the system. You only need 2 months worth of bank statements. I could get a loan from a bank or my parents and put it in the bank 3 months before settlement.... at least one month before I apply for a mortgage.  I will talk about this later... so putting out there the checks and balances, in many cases, can be abused in one way or another.  It comes down to educating the consumer.  thanks for your honest feedback..

BOB.... bingo, in regards to the appraisals being inflated. If true and real value is there, how are you inflating value? Just as I mentioned to Jason above...  what about the 6% seller contribution?  Don't people raise the sales price at times to cover this also?  Gee, can't your over-inflated value be talked about then also??? 

In my honest opinion, I just think it's a false argument by the real estate community to shift thinking on the whole process to a negative aspect.  Just like false security....  when a loan officer tells a consumer that getting them approved is not a problem, but at the very end, they say sorry... and that loan officer knowing that it was a shot in the dark, but they didn't tell this to the client.  hhhhmmm  

Your last statement shouts out volumes of truth...  "Again, its not this program that is broken.  It is the process and some of the unethical people that take advantage and abuse the program." 

How come DPA's weren't talked about negatively in 1998, or in 2000?  2003?   I will say this again, we are in a bad economy now.  More people can't keep up with the rising cost of oil, gas, and food prices.  People are losing their jobs....  talk to Missy Caulk in Michigan. They have engineers using this program, to allow them to keep their $5,000 or $10,000 savings in the bank, to get into the house with no money. 

Here is a point that I want to share with everyone.....

If I have a client buying a home and all they have is $7,000....  but they need to use every penny, plus get seller help of $6,000, on a 200 k house....  when they move in, how much money does that buyer have?   ZERO....    Where do most of you think happens to someone that is foreclosing?  Let's be real and serious.... they run into a financial issue and don't have a savings to fall back on. Then what?  Just something to think about in regards to this whole argument.   thanks

CARL.....   great minds think a like. You said... "please keep in mind that in all the history of real estate easier terms and seller concessions have always resulted in a higher price."

I mentioned this to Jason S. in my comment to him.  It really irks me when people are so one-side or one-minded and see or hear what they want to hear. Yes, many times have the sales price been raised to even incorporate the seller consessions.  People need to realize this...  if I am buying a $200,000 house and the seller will agree to pay a full 6%,,,, which is $12,000... but the total closing costs and prepaids total 3.5% which is $7,000... the rest of the money can't be used for the down payment and the buyer needs 3% of their own money. So, you can use the rest of the money for the buyers down payment and call it a day. Now the buyer needs nothing and can keep any of their savings.  I know you know this... but I wanted to break it down for everyone else to see and to understand.

Your next statement is so right on....  I even made this same statement to another loan officer just today, on the phone... you said....  "In addition, 100%LTV loans would have problems in the secondary mortgage markets that 97LTV loans with DPA assistance don't have."

Even most loan officers don't understand risk and how mortgages are sold on the secondary market. That has been my other argument against true 100% programs...  at least with the FHA, you still have anywhere from 2% to 3% as a down payment. Okay, it's not much, but there is more equity than a 100% loan. Besides, as you stated, it has more value on Wall Street.

Your last statement.??? Again, great minds think a like. Because there are so many long comments on here, I have been reading a comment, then replying. So, it's funny and very cool that we have both stated some of the same important issues.  I actually supplied 4 links in my comment to Jason, showing what Nehemiah has done for so many communities. 

Overall....thanks for that very detailed comment.....

DIRTY LAUNDRY...... . again, someone that needs to hide behind a false name.  if you feel so strongly against these types of DPA's, why not show your name?  You made this statement.... "Let's keep doin it until the Insurance Fund is bankrupt hoooray!!!  Yeah keep it alive!"

If I am reading your comment correctly, are you saying that the insurance fund will go bankrupt because of these DPA's?  Okay???   Are you one of those that claim that 1 out of every 3 DPA loans go into foreclosure?  Go right ahead.. because I will ask you to supply this proof then. And when you do, I want a complete breakdown of each and every DPA loan ... 

• how was it underwritten  - 
  • did they have bad credit? 
  • higher than normal debt to income ratios?
  • poor spending habbits that can be seen from the credit report
• was there a life altering scenario after it had closed?
  • did the borrower or co-borrower lose their job?  loss of income?
  • was there a divorce involed?
  • a death in the family --  and they had a lot of expenses.
  • medical expenses not paid by their insurance

See, I am a true stats guy.... and in a debate, you need to show the proof to make your statements credible. You are just mouthing off with opinions and not facts.  Why don't you just throw Enron into this ???   And your comment that two prices are illegal?  What planet are you living on? Did you ever hear of supply and demand? You can sometimes demand more, when supply is lacking and price goes up.  Or in this case, when the seller can give back some of the equity to help with the buyers purchase. If the appraiser is ethical and understands how appraisals and sales work, and the appraisal is real and valid... that the comps aren't stretched and truly follow the guidelines of appraising.. and the value is sound. Why knock it?  And what about the underwriter?  A very good underwriter will review the appraisal and the comps. What I think you have mixed up is that yes, there were unethical appraisers and loan officers that asked appraisers to squeeze out as much as possible. 

In any case, there will always be haters. People that voice their oppinions on false hope or false fact or opinion. 

BOB L......   over the last few years, the appraisal issue has been the biggest argument from those that oppose the DPA programs. We all can agree that there are some that will abuse the appraisal system. The loan officer pushing the appraiser get a higher value, which can be harder on a purchase than a refinance. And the appraiser that has no problem doing this, in order to keep getting more business.  I have a local appraiser that use to get 20 orders a month from one lender and he was lucky if he could do 1 of them. Because after pulling comps, he could never get close to the value that they needed.

In regards to the appraisals...  there are checks and balances on this. 

• First, you have the appraiser who needs to ethically appraise the property
• you then have the underwriter who needs to review the appraisal and to make sure that the comps are in line
• some lenders will use appraisal systems to have a review appraisal
• and then you have the final investor or buys the loan from the banker, who can still review the appraisal to make sure that the whole loan is sellable.

And in regards to the 6% seller concession. I mentioned this in another comment. Doesn't anyone know that prices are raised to cover this also?  So, then what is the difference? Why don't we start to just eliminate that also then?????

Lastly... and your question about what happens to the economy if these DPA's are removed??? In my opinion....  it will hurt....  some lenders use this a lot.. some, a little. I would say the overall affect to the market?  About 20% less purchases.

HELLO?? ........   wow, you have me really confused. I guess you were stating Bob's comment and if so, put it in italics next time. In regards to everything else that you have said.... supply us links to what you are talking about. I appreciate your comment, but it also sounds like you don't have a clear idea. Let me ask you one simple question. How come this wasn't a big issue 7 years ago?  How come now?  How come it's very bad to do a DPA program now?   How about a bad economy that is making everything look bad.

On another note, you brought up history....  I don't think you know to much about history. How about the basic history that homes appreciate.  Yes, the market crashed when it came to home values the last few years.

• Maybe because of supply and demand, and that buyers helped with prices moving up quicker than they should have.
• Maybe realtors pushing a higher value.
• Maybe a specific area that warranted a higher value because of location.

You can argue price all you want. Why not argue oil prices?  Why not argue diamond prices?  People will pay for it...  Did you know that purchasing a home is a major investment? 99% of the time, it will increase in value. Did you know that purchasing a home is suppose to be a long term investment? Did some of these greedy buyers get caught with their pants down, that hurt the market.. thinking that if they go out and buy a few homes, that in a year or two, they will make lots of money?  I knew some people that lived in what state, but had a second home built in a warm location, seeing values rise quickly, that their plan was to have it built and then sell it quickly, hoping to make 100k quickly... rut row, I know 2 people personally that lost money now....  they got caught with their pants down. My point?  Real estate is something that shouldn't be taken lightly. It comes with responsibilty. Most home buyers take it seriously and with pride. Home ownership is pride.  Again, look into the whole foreclosure issue. A lot of it was not just because values dropped and people walked away from their investments. It was either because the previous lender put them into some type of adjustable, making promises that they could refinance quickly... or it was a loan that they misled the consumer on and sold them only the positives. And the other part of the foreclosures?  The economy....  expenses... loss of jobs, income, employment. But nobody brings any of this up.  Why not? 

REBECCA........  my pleasure and thanks for stopping by.

BOB L. ....... .  who was calling who names?  In any case,  I do agree about those commenting without their real name. If they are so passionate to kill it, and want to be heard, why are they hiding though???  I have answers, but that is not what this is all about.  Thanks for your support. I want to address Janet's comment.

JANET.....  interesting...  this is what you said.... "The impact will be to remove a fraudulent activity from the marketplace.  Let the chips fall where they may.  It should never have existed in the first place." 

so, that is what your impact will be?  So you are calling ALL appraisals done when DPA is involved as fradualent?  In my honest opinion, you have this all backwards. By taking away DPA, you will open the door to more fraud. Did you think about that?  Probably not.  Depserate people will do desperate things. I won't... but I know others will.....  the loan officer, the realtor, the appraiser, and the buyer.  People will back door the system and you will see it more if you take DPA programs away.

Let me ask you something... let me ask you a question Janet.  What is your take on seller concession?  Allowing up to 6% from the seller to the buyer?  How do you view this? Do you like it?  Do you think it works?

Now, I am very confused by this statement that you made.  "Telling homebuyers they are receiving a gift while the price is inflated to force them to pay it back is not honest." 

That they have to pay it back?  Pay what back?  It's a gift.  Do you know that HUD's guidelines state that a buyer can receive a 100% gift to purchase a home. And that the gift can come from a family member or a non-profit organization?  Did you know that you can get something from your employer?  You can get a loan from your employer, and it can be placed as a second lien on the property. And that there are no CLTV requirements for this. It can be case by case with lenders, but FHA allows for it.

Overall, you are screaming about DPA, fraud, and any thing else just to complain. But there are other ways around this... legally.  And as I mentioned, by taking away DPA, it will allow for more fraud.  Read this by Ken Cook, to get more education about DPA's, by a true professional : Opposition of Down Payment Assistance

MAKIN MONEY......   you can assume all you want.  Yes, I make money... but my first goal is to educate the consumer and make sure they understand and get a very fair deal. You want to know a little secret?  From 2001 to 205, when many loan officers were making 6 figures, I didn't.  I did deals to help people....  it wasn't a pay check for me. I lost many deals to those that were offered the best rate or the best deal. And most times, they got a worse deal. And I can prove this.

So,... I love money.... but I also take a lot of pride in what I do.... and that is helping people. Sound phony?  I have W-2's to prove it,,,,, and my business plan wasn't as good. But I also lost deals by people that did subprime when they should have gone FHA... so you have me all wrong. But again, it's America, freedom of speech.

And sorry to say this, but your comments show me that you have no idea about mortgages and how they work... how people work, and how the economy works. You think 100% programs are going to be better and to help?  We will still be in the same boat....  people sell homes for several reasons. What do you think about the 6% seller contribution?  Don't you know that the sellers still raise the purchase price to cover this also.  Again, your comments don't impress me. It's all about the money and you.  That is 50% of the reason why we are in a mortgage mess.  thanks for stopping by.

BOB L. ......   thanks for the comments and in regards to Janet's comment. I have realized that some people just like to complain, to be on the other side of things, even if they don't really care who wins or that they truly understand what is taking place. I agree, that comment, "to let the chips fall where they may" is like saying... I give up (throwing hands up in the air).  Sad and scary, when this will affect our economy, which is already in trouble.  thanks

JASON.....  did you wake up yet?  It's now evening and morning has gone by... lol   That stinks about the comment...  did you try Firefox as I mentioned?  In any case, I hope you come back to post a similiar comment again.  Because I am always looking for a good debate, no matter what side one is on.  thanks

LARRY.....   I don't think you fully understood Jason S. in regards to FHA.  His main concern are the loan officers and lenders that specifically did subprime and are now jumping into the FHA market. That scares him and gives him concern. And a little of how he thinks that many bad loans are being approved FHA.... but that is another story in itself.  But I think there is a good shot at keeping DPA programs around, but with some provisions.... which I don't mind.  thanks

JASON......  read this by Ken Cook....Opposition of Down Payment Assistance   This might give you some facts and a better understanding that this will have a bigger impact for the negative if not allowed, than you think. 

Another thing to keep in mind is that these programs have been around for over a full decade.  Why are they being attacked now, more than ever?  Maybe because we are in a bad economy now?  We talked about this, but the definition of Recession is very scary when you look into it. 

CHRISTOPHER & STEPHANIE.... yes I am pumped. Thanks and thanks for stopping by.

MARGARET.....  thank you so much for that detailed comment.  It just adds so much to when I talked about the ripple affect. And that you were able to give examples of this, which is what we need, in order to show everyone what could take place if we can't still use these types of DPA loans. Especially the part that you talked about, in regards to the fact that it attracts more buyers also.  thanks and thanks on the congrats

BO.....  we agree on this, which is good. It's not so much a shot in the arm, but reality. And we need to educate people on the positives, besides the negatives.  thanks for your support.

JONATHAN......  I agree, I think the tax credit is just that, smoke and mirrors.  We need to focus more on something of this magnitude. Thanks for the support.

JOAN....   I have no problem with anyone disagreeing with me, opinion, and even personal attacks per se. Why?  It allows me to answer them in a manner beyond my personal opinion, but with hard core facts. And I also think it can give myself or the issue credibility. In any case, thanks for the comment and for the support. I hope the facts mentioned help some and would love any feedback from you.

RANDALL.....  you want stats?  Please read this by Ken Cook   -  Down payment assitance states -  in regards to your comment... you said, "I think the DPA programs need major revision if the loans are under performing vs. non-DPA loans."    

My question to you, what information is this based on? Even though you said if, .... what are you hearing out there?  Just a fyi and I mentioned this above, but the gov't is misleading us when it comes to their stats. And there are reasons outside of the main concern that the DPA loans don't perform. I have a large problem with that.  And as I mentioned, in most cases, why are loans not performing period?  Today's economy.  And if we still qualify buyers the same as we do on a regular FHA loan, there isn't much difference, other than what others mention or state, that is misleading. And no real proof of such figures from the gov't.  Just my .02.  But yes, I think that we need to tighten down just a tad on the DPA's.  My suggestion would be to require the buyer to have 2 to 3 months of reserves, after closing, of their own money.

FRED.......  well, thank you very much. I try to respond to most people accordingly, especially if their comment is detailed and or if they ask questions. I try to do this on most blogs that I get comments on. This one just happens to bring more heated discussion, hence my longer comments.  So I appreciate the awareness.

It's okay not to be fully behind the DPA's.... as long as you know that there is a place for them, even in today's market.  But doesn't that go with anything in the mortgage industry, just as we had the pay option arms, the stated loans, etc etc.  It's those that mislead the consumer or abuse the program themselves as a so-called professional lender, that can give it all a bad name.

In regards to re-blogging it?  Thank you very much for that and for the compliment in doing so... and for your feedback. In regards to the 100% financing?  I talked about this in a few of my comments. I am slightly against that for several reasons. Keep in mind, no matter where the money comes from, at least there would be a small down payment involved. With 100% financing?  There is none... just my .02. thanks

AUDREY.....    well, getting the 6% changed to be allowed for even the down payment is up to HUD. In regards to the 100%?  I don't like it as much. Why?  There is a lot more behind this than many think or know. First off, you have no down payment into the deal, no matter where the money comes from. Secondly, this is harder to sell on Wall Street and the investors.  And pricing could be more expensive.  People failed to realize that anny kind of 100% financing will be higher in rate and in mortgage insurance. So why not use that money from the seller, to be used for the down payment and to keep the rate and everything else down?  Just food for thought...

And I agree, the price is whatever the buyer and seller agree to pay for, within reason of the market. Hence why you have appraisals for each property. ...in which the appraisers need to be licensed... and why you have underwriters that are suppose to review these appraisals. Yes, some will get through, but appraisals also get chopped.

In regards to coming down to the rally, please do... it would be great to meet you and a few of the other 'Rainers' from Active Rain.  Please send this out to everyone possible. Also, keep in mind, I am having one myself on the 17th... so please keep your calendar open for that.  thanks for the support and for the comment.

JASON S. .... would you subscribe to my blog?   Seriously, thanks for the follow up comment.  I am semi tired at doing this, but let me see here... 

So, you try not to or don't mix emotion with passion?  That my friend is hard to do.... and from talking to you, I think you do often, more often than you think. Just my opinion. And there is nothing wrong with that nor does it hurt... I believe that you can still act with both and still make good decisions... but then again, everyone is different.

In regards to the rest of your statments, we agree for the most part. Except for the very last one, in which you said.... "but it's market share of some 30% (at least in Pa) now as opposed to 3% a year ago is a bit worrying.  I know part of that reason is that folks were being put in subprime loans when they qualified FHA.  I'm not sold that the FHA can carry an all of a sudden surge in the market share. "

Well, I have spoken to many, about 7 loan officers in the last 3 days, who have more than 10 years experience with FHA and lending in general. Not one of them feels the same as you do. Not to say that you are wrong. But it's not FHA that is going to carry all of these loans. It's the investors and Wall Street.  And as I stated, it comes down to the inderwriters and lenders not wanting to lose their DE underwriting license. That is huge..... bigger than I think you know. yes, you will have some underwriters and lenders try to push the envelope, but some do this with most kinds of loans. And the reality of it is that many FHA loans will get a refer and will need to be manually underwritten. I just think you are caught up with that one company that did all subprime and are now running around saying that they are FHA experts... ignore that... FHA fails if the market fails.... which means the economy collapses.  But to make you understand this, I guess we need to wait for 2 years....  I will tell you one thing, stop listening to the misleading facts by HUD... even on the DPA loans. Stats are finally starting to appear, real stats on paper, and they are nothing close to what HUD stated...  do we hear politics?  An agenda on HUD's side?  yes, and yes.  

Overall, thanks for your feedback...

FRED......  the point that you make, about keeping the total amount at 6%, DPA or Seller help, is keeping things in check. If you think about it... 6% should work for most deals, especially loan amounts over $180,000.... unless the loan officer wants to take that extra percentage and make more money. Gee, when I do a $300,000 loan in Florida, $18,000 is just enough to make it all work, even with the tax stamp fees....   thanks for making this point.

TOM..... I think I know what you wanted to say. But outside of that, why not give us your real opinion and perspective?  thanks

JON.......   my pleasure.. and yes, there are some good views. In my opinion, I think some are short on views, because some just like to complain, without looking at all of the facts, from both sides of the fence. And you just can't believe stats that are never shown, such those stats from HUD saying that 1 out of 3 DPA's go into foreclosure... 

GERRY.....   thanks for the polite compliments.  And in regards to the 6% seller contribution, I would rather have it used towards the buyers down payment.  Yes, you can use it to do a buydown or to buy down their rate, but then that still means that the consumer needs to come up with 3% of their own money.  But at least you are using it for something.   thanks for the input.

MICHAEL....   I agree, they should just make it more like risk base pricing and to make it mandatory with reserves. The politicians in my opinion aren't thinking clearly on this one and I hope they read something like this, to get good feedback.  thanks

JOYCE.....  I am not concerned about the strong opinions on here that come across negatively. What I am concerned about is the lack of common sense as you mentioned and those that just don't add 2 and 2 together. Many of the arguments in my mind are very week. We need to look at the outcome and not what HUD wants us to think, with the misleading facts.  As I stated and a few others, the rippling affect could be a lot worse than many think... but it will be too late in two years, when the housing market is then crippled, because we took some major players out of the market... those players being good, qualified 1st time homebuyers that just didn't have any money.

As a great example of this, I am closing 6 loans this month.  Out of those 6 loans, 4 of them are using the DPA program. out of those 4, 3 of the buyers all have over 700 credit scores and not one qualifying ratio is over the limit set in the guidelines.  That right there will kill a lot of good deals that would keep the cycle moving in a positive manner.  thanks for the support.  Please pass this along to everyone out there.  thanks

LORI.... don't worry about not having an answer or an opinion... just wanting to thank you for the kind words and for your support... thanks

CAROLE... again, just the support means so much to me. I appreciate the time to make a comment and to show your support.  thanks

SHEREE......  I always love a good spirited debate. One thing that I just don't get..... those that are against this, that they say they feel so strongly against, that they hide behind fake or anonymous names.

On another note... thanks for sharing your experiences with us in regards to DPA programs. As you have mentioned about appraisals, so many use this against the DPA programs, saying how this works against the program. How fraud is commited and homes are being sold for more than they are worth. I am really getting sick of this argument. There are some valid points on both sides. But the main one is that not only do you have an appraiser appraise the property, but at least one underwriter that reviews these. And you bring up a great example, that your value was basically chopped on one of them. I have had value on one that was lowered by $6,000. And if we feel like we need more info for that appraisal, we will ask for an additional comp in the subject area, a pending sale and a listing. We are asking appraisers to do double the work now, to make sure value is there. Value can be debated all the time. About how people are under water now...  lol  Gee, there are many people that are under water, those who even put 10% to 20% down.

And as both you, myself, and Margaret mentioned that is scary is the ripple affect. These naysayers?  I would bet most of them are either not experienced and just a complainer, or that they live in a high priced area to where they don't see loans done with DPA.  But the rest of America?  They will see and feel the ripple affect and what will happen then?  thanks for your input and feedback.

MARIE aka Trinity....  guilty?  Is that how you view it?  And I do appreciate your feedback...  but your example of 100k purchase price?   You make it sound very easy and very cheap for anyone to do this in todays economy. Well, if I bought a $100,000 property, yes, it would be easier. And this might be good in Camden, NJ, parts of MI, MO, OK, TX, and some parts of Florida... etc etc..  My whole point, use your example on a house that is being sold for $300,000... and I am being polite with that amount because in some areas, the cheapest housing is $400,000. But let's look at $300,000. My down payment alone is now $6,750. And this is not including other costs.

Overall, I do see your point... but those that are buying the $100,000 homes in many cases, are working their butts off at $10 an hour. How much do you make a year? Do you make 70k a year?  Well, if you answered yes, yes, it should be no problem for you to come up with the money to buy a $100,000.  But wait, let's get back to the average family income of 4 and the average home values. I am just trying to make a point that what might seem easy for you is not easy for the average American. If you can look at it like this, does your answer and opinion change?  Just curious... I am not here to change opinions, but to give facts and opinions that have common sense behind them... and not an opinion based on HUD's misleading stats that not one person has proven as of yet.  Thanks for your honest feedback.

PATRICIA.... that would be great. I should be arriving at around 10:30 am... I will call you before noon, on your cell... looking forward to seeing you again.  And bring people from your office or anyone else.  thanks