Hey all, if you have not heard here is the latest. I hate to be the one running through the streets yelling at the top of my lungs, the British are coming.
The British may not be coming, and if they were I am not sure it would be a problem, but there are a couple of loan programs that our clients have been using successifully that are coming to an end.
The House of Representatives passed H.R. 3221, a wide sweeping piece of legislation that addresses a variety of housing related issues. On pages 479 - 481 of the bill, the elimination of down payment assistance is cited (SEC. 2113) with an end date of October 1, 2008.
What this means is that the seller will no longer be able to contribute to the buyers down payment. Every buyer will be required to come in with a minimum of 3.50% of their own money for the down payment. They can borrow the 3.50% from a relative but the seller can not contribute to that down payment.
The seller can still pay closing costs and that has not changed at this time. We are experiencing many changes in the lending and housing industry so please do not hesitate to ask questions.
If you originate a loan before that date and it gets agreed upon by the seller, whether a bank, corporation, or private person, then you are good to go and can still use this program.
With Honor - Connor MacIVOR with REMAX of Santa Clarita and the Paris911 Team!
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