If you are looking to purchase a home and were planning on getting down payment assistance from the seller with a FHA program. The message has been sent.
START LOOKING FOR A HOME NOW WHILE IT'S STILL AVAILABLE.
Legislation is pending for the elimination of seller-funded down payment assistance(up to 3% of purchase price) in October of this year. Which many borrowers have taken advantage of to help get into their homes.
Is this new change going to help the housing industry?????
NO
Is this new change going to help the mortgage industry?????
NO
What will it do.
Hurt the borrowers, housing industry, & mortgage industry by cutting off a program that helps qualified people purchase a home.
Down payment assistance is a key to home ownership for many people.
Down payment assistance benefits both sellers & buyers.
The ability to raise the required 3% down payment for a home should not disqualify a borrower. FHA closely watches each prospective loan to keep debt ratios down as well as looking at the borrowers track record for payments in the last 12-24 months. They do not give mortgages out to people who do not pay their bills. The idea is to keep people in their homes.
If this program is eliminated in October. It will be a not only hurt the housing industry, it will hurt people.
Once again, if you intend on using this program. Now is a good time to start looking for that new home!
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