Down Payment Assistance (is it going to be an option for some)

FHA Loans and Down Payment Assistance Lives On

Many home buyers have been taking advantage of several down payment assistance programs that have been around for some time.  This trend has helped prospective buyers who have good income and credit scores, but not a lot of cash, get into homes without having to save and put off buying a home for another year or two.  Recently, however, loan officers like myself have heard that HUD (Housing and Urban Development) was going to shut  these down payment assistance programs down, partially because of the bad reputation they have acquired with accusations for being a cause of the waves of foreclosures our nation has been experiencing.  Just in the past few days we did receive some good news about the down payment assistance programs.  Originally, we were told that all loans with this type of assistance had to close and fund by September 30, 2008.  Instead, this deadline has been somewhat pushed back.  Loans must still receive final approval, be appraised, and receive no more changes by the end of the day on September 30^th but the loan does not actually have to close and fund in September. 

Furthermore, there is some hope for home buyers with good/fair credit scores.  According to Matt Carter with Inman News HR6694 will allow sellers to continue down-payment assistance through nonprofit groups.  Additionally, home buyers with credit scores above 680 will still be able to use seller contributions for down payments on FHA loans and borrowers with scores between 620-680 may still be able to receive some assistance but will pay higher insurance premium fees. Down payment assistance programs have many pluses and minuses but, in a buyer’s market like we have in San Antonio, this extra help can mean many borrowers will be able to make their dreams of home ownership a reality sooner than they thought possible.  

Comments

[Jovan]

Saving DPA is one step closer to being a reality! Join me TODAY in calling some congress people to let them know how important this bill is to the American people and our economy. We have less than two weeks to make this our voices heard. Here are 3 very influential congress people that can have an impact on our progress.

Congressman Steny Hoyer of Maryland: 202-225-4131

Congressman Roy Blunt of Southwest Missouri: 202-225-6536

Congressman John Boehner of Ohio: 202-225-6205

Let's make this happen!!!