This is a comment from a Mortgage Broker "The requirements set forth in the latest mortgagee letter will take place Jan 1, 2009. My reference to October 1, 2008 is that lenders have now stopped doing seller down payment assistance as of Oct 1. Remember, gift money, grants, bonds, charitable contributions (churches, etc.) are acceptable. We just can't use seller contributions for down payments. Sellers will still be allowed to contribute 6% towards closing costs."
So here as before the sellers could participate in a buyer's down payment assistance program and it would be a total of 6% to help the buyers get the down payment AND Closing costs paid. NOW..... As this state's THE SELLERS CAN STILL GIVE 6% but buyer has to pay 3.5% WHICH CAN BE RECIEVED AS A GIFT NOT FROM SELLER. So isn't this just a way to get MORE money to replenish all the monies lenders lost. Then there is now going to be UPMI which is PMI paid up front, this I am sure is to help replenish the billions of dollars depleted from the PMI. There is also monthly PMI. Wow so really I thought this whole new program coming out was to help the people, but sellers are still conceding the 6 % which in my opinion is way too much and they pay 6% commission, which is 12% just off the top before closing costs of their own. So will sellers ever get a break? I thought they would. Now the buyer can STILL get 100 % financing by using a charitable contributions from grants, bonds, etc.
So now the Seller pays the same because now the money is needed for all the RAISED COSTS OF THIS NEW PROGRAM, and there is 9 months to a year's worth of homes on the market so seller wants to sell and then buyer then gets the 3.5(which was 3% down), from a charitable source so does it not remain the same, the buyer still has 100% financing. In my opinion this Bill is not to help us the people but to help the government which is HUD, Freddie Mac, and Fannie May, which are the government backed loans. This Bill is going to take much more money from consumers to replenish the government money. What if we all boycott and say for 1 month we won't buy or sell any Real Estate related to these programs. That is what the union does... Why can't we the people do that?