Zero Down Payment Still an Option for Dothan Home Buyers

Various down payment assistance programs available for FHA loans were set to go away on October 31, 2007. However, according to an email forwarded to me that originated from the desk of Joel Pate, Founder of the American Family Funds Down Payment Gift Program, the program was granted an extension by a Federal Court in Washington D.C. to continue to offer down payment gifts through March 30, 2008. It is probably safe to assume that other such programs, such as Ameridream and The Nehemiah Foundation, have been granted an extension as well.

There are many opinions regarding these type of programs. I know that I have worked with several buyers over the past few years that have used one of these programs and are now delighted to be owning a home. I also understand the flip side, that many times the sale price gets inflated and the buyer is assuming very little risk. I think each situation is unique and every buyer should work with a real estate and mortgage professional to determine the best route for them.

Below are links to more detailed coverage of this news.

Rob from 3 Pounds of Real Estate

Chris from the St. Louis Real Estate Voice

Lynnette Khalfani-Cox does a good job on her blog explaining the advantages of these down payment assistance programs at themoneycoach.net.

If you are interested in the possibility of buying a home with no money down, gives us a call or send us an email. We are in the market everyday and will be happy to answer any questions you may have.