Many are questioning whether the October 1st ban on FHA down payment assistance programs is good for business. Seller funded gifts have allowed many families with little or no money in the bank an opportunity to enjoy the benefits of homeownership. Many claim that these types of DPA programs inflate home prices and have contributed to our currrent foreclosure epidemic. Congress is now considering alternative options for FHA down-payment assistance programs that might provide a better solution than terminating the program altogether.
One of the proposals is to allow borrowers with credit scores of 680 or above to use seller-funded down-payment assistance on FHA backed loans. Credit Scores between 620-680 would be subject to higher insurance premium fees and borrowers with scores below 620 would be excluded from participation.
One thing is certain, if these types of programs are abandoned, home sales and lending options will decrease for first time home buyers.
For more details on FHA Downpayment Assistance Programs and new government proposals, please visit:
Dallas Home Buyer Assistance Programs
FHA Down Payment Assistant Program Proposals
Dallas Fort Worth Real Estate
Fort Worth Real Estate
Dallas Real Estate
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