Going away OCTOBER 1st.......
I think it's going away this time-which will deal yet another blow to people who can't afford a down payment (especially minority lending). If FHA comes out with a 100% loan, it may be fine but, in this environment I think bringing out this kind of product now may be too bad of press.
What people don't understand is, the DAP's are used with FHA loans but are "full doc" loans just with no money down-they aren't the reason the market tanked-the economy/gas prices along with the reduced documentation programs that were made available is the main reason for the market meltdown.
It just stinks that, like in a lot of cases, the people that have the power to make major decisions (like to cut the DAP programs) aren't necessarily the people who know the ins and outs and what the best soutions for the problems are.
There are so few 100% or no money down type programs available now, the markets have really changed over the past year or so. Now I agree that there were a lot of "silly' loan programs made available to everyone but this isn't one of them. This isn't a stated, reduced doc, or no doc type of program, it is used with an FHA loan so it is a fully underwritten product-meaning the buyers fully qualify for the loan amount-they just don't have the funds for a down payment.
Please, no matter if you are a lender, realtor, buyer, seller, etc...... take a minute to go to this website click on take action and help us voice continued support for this program before it goes away for good.