I received an update from the Nehemiah program following my last post on downpayment assistance programs in trouble.
Due to significant interest, The Department of Housing and Urban Development (HUD) has extended the public comment period on the proposed rule entitled ‘Standards for Mortgagor's Investment in Mortgaged Property' until August 10, 2007.
If the proposed rule is implemented as currently written, homebuyers using mortgages insured by the Federal Housing Administration (FHA) would be prohibited from accepting downpayment gifts that are indirectly funded by the home seller. This would impact your business by eliminating all privately funded downpayment assistance programs.
The extended comment period ensures that Congress will have the necessary time to properly review the role downpayment assistance programs play in providing access to homeownership for tens of thousands of low and moderate income borrowers each year. Downpayment assistance has been responsible for creating more than 500,000 low and moderate income homeowners since 1997 and we agree that further Congressional review and public comment is necessary before disbanding the programs that have helped so many families achieve the American dream of homeownership, inculding me.
Please submit your comments through the Association for Homeowners Across America website at: http://takeaction.ahaanow.org/
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