Well, maybe your voice has been heard. Maybe it was the shot heard around the world. As news broke earlier today, in which there has been speculation that bill HR 3221, the "Housing and Economic Recovery Act of 2008, would be overturned, bill HR 6694 made strides today.
There are good signs stating that the down payment assistance programs, such as Nehemiah, AmeriDream, Genesis, and so many others, will be voted back in. It's not a done deal as of yet, but with the strong support from Congressman Barney Frank, who is the chairman of the House Financial Services Committee, has some promises on the table. One such promise on the table is that HR 6694 would allow all borrowers with credit scores 680 and above, to be able to use the seller-funded DPA programs. This is a huge start and a lot of this is from the support from people like you and I.
This kind of news won't keep me from taking back Down Payment Assistance Programs in Washington D.C. tomorrow afternoon. We still need everyone's support, to make the Senate aware of the ramifications of eliminating such down payment assistance programs.
Such elimination, in my opinion, would put another severe strain on the already strained housing market. And it could add a ripple affect to those houses on the market, adding more days not sold. If you think about it, if you are moving up, someone needs to buy your home and that is usually a first time homebuyer.
Conclusion :Some other things that HUD supports as a compromise to bill HR 6694 are :
- Borrowers with credit scores from 620 to 680 could be subject to higher insurance premiums. (I personally wouldn't have a problem with this)
- Borrowers with credit scores below 620 would be banned from using the down payment assistance program until mid 2009. ( I truly think that we could improve on this one. First off, why down to 620? Secondly, even people with credit scores of 570 or such can still have decent credit, under FHA's credit guidelines.
For more on this story, you can read about it here, at Inman News. http://www.inman.com/news/2008/09/10/congress-weighs-reprieve-seller-funded-gifts
UPDATE as of 9/11 - Mr. Belonger goes to Washington DC.
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Copyright © 2008 by Jeff Belonger
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