I'd be interested in hearing everyones opinion on what you think will happen? Will it go away? Permanently, temporarilly, not at all?
Own Your Own Home and it's agents has utilized the Down Payment Assistance program with our clients. It's been a tremendous tool. Statistics show that Foreclosures struck those using DPA, who had credit scores under 620, and a relatively high DTI. Since most of our closed transactions were with people who had scores over 620 and good DTI, I suppose that is one of the reasons that Own Your Own Home Clients seemed to be surviving in this market, and not foreclosing in mass droves!
This whole situation is a mess though! 2-3 years ago when interest rates were medium, and home prices had gone up considerably, banks were offering interest only loans with variable rates like they couldn't get rid of them fast enough! Of course, anyone with common sense should have seen that the likelihood in the the next few years that rates could go higher, and home prices would indeed go level off or drop. Not a good scenario for someone with a variable interest rate, especially someone who already Re-Fi'd and had little to none to negative equity in their home.
Now that home prices are low again, and rates could very well be lower in the next few years, you can't get those loan programs anymore.
The idea behind eliminating DPA is to protect buyers, the market, and the banks going forward...but isn't this the time for those kind of programs? Buyers who missed the boat the first time when the market went up, have another chance! Buyers who did buy, but made mistakes with loan choices, or refinancing, have a reprieve.
Our economy as a whole has taken a hit...don't we want as many as possible to be able to buy houses, building equity, and there net worths?
Good luck to all as you go about your business this week! Let me know what you think!
Jason Stevens---Own Your Own Home----www.oyohaz.com-----623-236-3531
Comments(2)