I was getting ready to write the latest version of my series, Power Quotes Series, when I came across a post from Carol Smith. Her post was about the "Dreaded DPA" and if it was going to be OK. And this is what got me back to thinking that someone needs to set a few things straight on DPA. Now mind you, Carol is not one of those people that need to be set straight. The ones that need to be set straight are the people that are against DPA.

The biggest misconception to the DPA "going away" is that this will force the customer to have to bring 3.5% of their own money to the table. Some Realtors contend that if they can not do that, then they do not need to buy. Those same Realtors are the ones that call their loan officer and want to know why a particular condition from underwriting cannot be overlooked. But, that is a chicken of a different color. Time to get back on track. The misconception with this is the fact that the down payment actually DOES NOT have to come from the buyer. It actually can be a gift as long as the SELLER is not a part of it.

When people think that DPA is dead and gone, it is not. The DPA programs are fighting along with a bunch of Realtors, Lenders, and others that think the DPA programs that are SELLER based program are helpful to people that need them. Yes, I am the first to admit that people abuse these programs. It is like any programs that are out there. Give a person a little and they want a lot. It is the American way. And for those of you out there that think to yourself that you do not act that way, you need to wake up.I have been associated in the credit industy for over 20 years and I see it everyday. If the sale is 2 for a $1, you want it to be 3 for a $1.

Anyway, back to the subject at hand. Companies like NEHEMIAH help people acquire homes. They goal is to facilitate the down payment. If you need anymore than that, read all about downpayment assistance here. And, so that everyone can be up to date on what Carol was telling us, here is an exertion from her post:

According to the Groundswell website, HR6694 passed the House Financial Services Committee on September 16th and is headed to the floor in the next few days for a full vote.

So, let's get back to the misconception theroy at hand. A potential buyer wants to buy but does not have the downpayment is hampered due to the fact that they do not have the option for DPA or have the funds in their account. Case in point is, the down payment can actually be a gift. Now mind you, I did not say "borrowed". I said gift and a GIFT LETTER will have to be supplied stating that this money will not have to be repaid. It can come from any number of sources. A few examples would be their family, their church, their school, their friends, a local or national charity, or every the city, county, or state government. And it is not limited from just these.

So, just because programs like Nehemiah are possibly going to be shelved, DPA is not dead and gone. If you need more information, then please call or email me.

About the Author

If you are in the market to purchase a home or even refinance an existing loan and you want a loan officer that will walk with you every step of the way, then contact Danny or Rich of the Thornton Team at Home America Mortgage today. We can have you pre-approval in as little as 4 hours. You can visit our website or send an email to thorntonteam@homeamericamortgage.com or call us @ 865-951-0522.