Pull the Plug on Ameridream

By
Real Estate Agent with Cactus Mountain Properties, LLC

Would it be ludicrous to propose that losing the Ameridream down payment assistance program is not the end of the world?  Sure, it's an inventive way to provide Buyers with the opportunity to get into a home with little money out-of-pocket and the Seller does receive a charitable donation on his income tax return but the bottom line is does the program disable us in achieving what really needs to happen in order to improve our current economic condition?  First, Buyers need to return to sound financial budgeting practices and wean off of government programs and credit solicitors so they can develop financial security over a lifetime by establishing a savings plan.  Sellers, after paying contributions to Buyers, multiple mortgage payoffs and closing costs along with declining market values cannot sell their property for enough money to cover all their costs. Thus prolonging the recovery period because more and more homes are dumped on the market for less than what is owed.  It maybe preposterous to even think that the Seller needs relief to help stabilize our economy, as well.  Pulling the plug on Ameridream may help balance the scale in leveling the mindset of our nation by working together to improve our situation.

Posted by

Barb Merrill Works 4 U!

Comments (11)

Ed Lopez
Vantage Realty Group - New Bedford, MA

Hi Barbara,

Thanks for the blog. I was unaware that the seller is eligible for a charitable. I have a property under agreement right now and the buyers are going with Ameridream. Could you elaborate on that tax issue so I can inform my sellers. Thanks

Sep 02, 2008 12:40 PM
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

I am in agreement to a degree... I do think the buyer needs to bring some REAL money to closing but I also feel that some Buyers need a little extra help to get into a home .. I think the middle ground is not to let buyers use DPA at 100% loan to value and at the top of their loan approval limit.

Sep 02, 2008 12:46 PM
Justin Ukaoma
Vizion KC - Kansas City, MO
Kansas City Real Estate Investments

I'm with you Barbara for the most part.  In the short term I see the disappearance of DPA severely hurting home sales.  For instance 5 out of our last 6 sales would not have been possible without DPA.  In the long term I think your correct people will need to return to saving money and making real down payments.  My problem is with the timing.  I'm not sure that taking away DPA now when its harder to save money is the best way to help correct housing.  www.vizionkc.com

Sep 02, 2008 01:36 PM
Barb Merrill
Cactus Mountain Properties, LLC - Tempe, AZ
GRI, Associate Broker

The tax deduction forms for Ameridream is provided by the Buyer's lender for the Seller to fill out and return before the close of escrow.  The forms can be found on Ameridream.org by clicking on "Lenders" tab on the left side of screen.  Then scroll down to forms.  Included will be the "Seller Enrollment Form".  This site provides the most accurate and updated information about what is happening with Ameridream and how it is evolving.

Sep 02, 2008 03:41 PM
Anonymous
First Time HOmebuyer

Currently, I needed to use downpayment assistance to purchase a home.  To save the required money I need could take years.  I don't think doing away with these programs will help any sellers out who need to buy now and it does not help me out because I keep just handing over money for rent and to Uncle Sam.  I don't think at this point there is a quick fix and frankly right now with the mess that has been made with the overinflated housing prices of years past and crazy lending practices there is any quick fix possible. 

Sep 05, 2008 12:38 PM
#5
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

Its funny but since we are not taking any more DPA offers the buyers have been coming up with the down payment, they had it all allong but but the buyers agents were so programed into "asking for the NORMAL 6%" Its a education issue not a real problem.

Sep 06, 2008 02:55 PM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

The assistance is still available, it can not be gifted from someone with a financial stake in the transaction.

Sep 06, 2008 02:56 PM
Anonymous
First Time Homebuyer

Sounds like downpayment assistance may still be alive with new restrictions.  Just tied to FICO scores.  If this passes this is good news for me.

Sep 11, 2008 10:00 AM
#8
Justin Ukaoma
Vizion KC - Kansas City, MO
Kansas City Real Estate Investments

Yeah if this happens its great news for all of us.  www.vizionkc.com

Sep 11, 2008 10:58 AM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

I notice that in reading the posts on the DPA programs going away, the Realtors don't seem to be too worried but the Lenders all seem to be up in arms, home ownership is a Privilege not a right.

have teh buyers budget, save and have something to put into the home.

Sep 13, 2008 05:03 AM
Anonymous
First Time Home Buyer

Realtors seem to be worried about it as well. The problem is industry-wide. The loss of any real estate program, whether Downpayment assistance, or other loan programs designed to get hard-working, honest people into housing, hurts the industry, the people it serves, and the economy as a whole.

Yes, it is a priviledge, but should not be a shut-out to people trying to get the american dream. The problem America currently faces is homes outpricing wages. If different markets are checked, the home cost far exceeds 3x the amount that a normal average hard-working family makes. The days when I Love Lucy's Ricky Ricardo could buy a ranch-style home in the country while working as a band leader at a local establishment like the Tropicana, is a tradition that America seems to be loosing.

Sep 13, 2008 07:34 PM
#11
Anonymous
First Time Homebuyer

According to dpagroundswell.org, a bill has passed the House Committee on Financial Services that would delay the October 1 shutdown of DPA programs.

Sep 16, 2008 03:51 PM
#12

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