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DOWN-PAYMENT ASSISTANCE PROGRAMS :: Are they going to be OK? Stay tuned ...

By
Real Estate Agent with Casmi Photography

There has been much conversation lately about the demise of the down payment assistance programs – primarily the Nehemiah Corporation. This type of program has been a true benefit for many that have wanted to purchase a home of their own.

Now, some may say that if a person needs down payment assistance then they have no business buying a home. I could not disagree more. And this is why:

  • Being short on down payment funds does not mean unable to afford a home.
  • Down payment assistance can help lower the interest rate by increasing the percentage down – thus helping the purchaser.
  • For someone starting out in a new home the purchase of furniture and appliances is often necessary. Not possible if all reserves are stripped for a down payment.
  • For young families, the down payment assistance programs help them become homeowners and provide a stable home for their children.

According to the Groundswell website, HR6694 passed the House Financial Services Committee on September 16th and is headed to the floor in the next few days for a full vote.

The Groundswell site also has a video of the discussion that took place in committee. Quite enlightening.

Let’s all keep our fingers crossed that this valuable tool makes it through a floor vote.

Our industry certainly doesn’t need anymore setbacks.

Posted by

 

Carol Smith

Casmi Photography

Mebane, NC 27302

919-418-6549

casmiphotography@triad.rr.com

 

 

Comments (9)

Elizabeth Nieves
The Elizabeth Nieves Realty Group - Durham, NC
Bilingual Raleigh - Durham North Carolina Real Estate Team

I have personally assisted many first time home buyers to purchase using DPA. I know of many families who just would not have been able to buy without that program. Like you said, they can afford the home, but they have a problem saving up for the down payment. I'm truly praying that the DPA will continue to help first time home buyers have the opportunity to own their homes. GBU, my sister!!

Sep 18, 2008 03:45 PM
Rich Dansereau
Positive Real Estate Professionals - Knoxville, TN

I think that DPA is a good program overall. When used properly it is a good tool.

Sep 18, 2008 04:21 PM
Joan Mirantz
Homequest Real Estate - Concord, NH
Realtor, GRI, CBR, SRES - Concord New Hampshire

We had a call to action on that bill...I got a delightful canned response!

Sep 18, 2008 05:20 PM
Danny Thornton
R & D Art - Knoxville, TN
WordPress Guru

Carol, I think that there is a lot of misconceptions on DPA. I am going to post a blog about this today.

Sep 19, 2008 01:02 AM
Carol Smith
Casmi Photography - Mebane, NC

Eli - In 6 years I have only had 3 deals that didn't require DPA.  It is truly a key to a first time homebuyer being able to make that giant leap from tenant to owner. 

Sep 19, 2008 04:40 AM
Carol Smith
Casmi Photography - Mebane, NC

Rich - Any tool is a good tool when used properly.  And because we live in a world of human frailty there will always be those that prefer to misuse the tool, circumvent the system and make a mess of things.  This does not make the tool a bad thing - just the judgement of the use.

Sep 19, 2008 04:42 AM
Carol Smith
Casmi Photography - Mebane, NC

Joan - I don't recall getting ai call to action from NAR on this.  And I respond to every one that I get.  I'll have to check into that.  But, truth be told, too many agents don't take the calls for action seriously.  They just figure the system will fix itself without their input.  How wrong they are ... but getting them to realize that their apathy affects us all is a tough task.

Sep 19, 2008 04:48 AM
Carol Smith
Casmi Photography - Mebane, NC

Danny - I'm looking forward to reading your thoughts on the whole situation.  Since I'm not in the finance end of this business I can only draw my conclusions from the agent side of the table.  And I agree that there are some serious misconceptions about DPA.  But then ... there are way too many misconceptions about our businesses all the way around.

Sep 19, 2008 04:50 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Carol, I am hoping this bill passes; I do know people that can't afford a down payment but would be able to manage a home.

Sep 19, 2008 12:43 PM