Thought I'd write a quick note about the commentary that appeared in the July 7 Inman
News Article by J. Lennox Scott called, "A plan for national downpayment assistance" (http://www.trendmls.com/Guest/News/IndustryNewsShowDoc.aspx?InmanId=123182).
According to the NAR's Profile of Home Buyers and Sellers 2009, first-time buyers represented some 47% of all home buyers, a market that contributed to 41% of prior-year sales as reported in their 2008 study. So I am in agreement that first time home buyers continue to be an ever more important and attractive force within the housing industry despite any changes in market size.
Actually, I believe the article is spot-on in several areas, but it should be noted that the federal government already offers Federal down payment assistance to first time home buyers on a limited basis beyond USDA and VA programs. Granted, home buyers must be at 80% of the metropolitan average median income, the assistance is only available through certain lenders, credit scores must be higher than those required with some other down payment assistance programs (at least those available in Georgia) and other much needed controls are in place. But the benefits available in the current program outweigh those described in the article. For instance,
- The purchase price is up to loan program limits rather than a straight $150K
- This soft-second mortgage is interest and monthly-payment free rather than being wrapped together with the first mortgage
- The loan is forgiven in five years
Another benefit over the GA first time home buyer program is the borrower's option to use a first mortgage of their own choice.
At any rate, count me among the advocates for an expansion of the Federal down payment assistance program. If you are NOT working with a real estate agent, please call for more information.
Solomon Greene
REALTOR® / HUD-Certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
http://www.AtlantaDownPaymentAssistance.com
(678) 775-2677
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