Barney Frank has been pushing to keep FHA seller assisted financing alive.
The House Financial Services Committee adopted H.R. 6694, legislation designed to reauthorize and reform down payment assistance programs that the Bush Administration banned in July.
In a final effort to head off the Oct. 1 ban on the use of seller-funded down-payment assistance with FHA-backed loans, H.R. 6694 is picking up steam as an alternative bill that would mend rather than end the practice of down payment assistance.
HR 6694 would allow qualified borrowers with credit scores of 680 or above to use seller-funded down-payment assistance on FHA-backed loans. Borrowers with scores between 620-680 will be subject to risk-based pricing and higher insurance premium fees.
This bill still needs to be approved by Congress and the President.
The committee vote was a positive step toward keeping a down payment assistance program, but it's not over. Members of Congress need to know that we are watching their vote on H.R. 6694.
Everybody who wants to see seller assisted down payment assistance preserved needs to call their representatives in the House and the U.S. Senate. They need to be told that a vote for H.R. 6694 is a vote for the next generation of homeowners.
Comments(0)