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Good-Bye Down Payment Assistance?

By
Mortgage and Lending with Ascent Home Loans

 

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!

 

Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

I cant believe this was past. And above all how and why raise the down payment to 3.5% new buyers shouldnt be penalized because banks were greedy.

Jul 27, 2008 05:17 AM
Kenzie Bond, REALTOR®, e-Pro serving Brazoria County
RE/MAX First Team II - Angleton, TX

Luckily my home is set to close on the 31st, and we did use a DPA. Although many are in support of ending the seller funded DPA's, I think that it is being targeted as an easy scapegoat in the current mortage mess. By utilizing strict lending guidelines, with stable employment and credit history, the DPA's can help qualified borrowers achieve their dream.

Overborrowing, creative financing, and shady practices are what got us in this mess - not DPA's.

Jul 27, 2008 05:18 AM
Richard Dolbeare
Inactive - Wailuku, HI
Living the Hawaii Lifestyle

Aren't the greedy banks the ones who made loans without reasonable assurances that it could be rapaid? 

Jul 27, 2008 05:36 AM
Danny Thornton
R & D Art - Knoxville, TN
WordPress Guru

Bryan, this might be one of the most bone headed moves this administration has done yet.

Jul 27, 2008 06:31 AM