There are many people trying to get congress to give the Downpayment Assistance Programs a reprieve. Greg Swann from Bloodhound Blog believes that about 40% of Phoenix buyers will be affected October 1st when DPA’s are discontinued due to the new law. That is a scary number.
We need buyers but do we need buyers who can’t put down 3%? I honestly don’t know. I have read arguments for and against but believe that removing the idea of the DPA is a knee jerk reaction. 100% financing has been villified so much that we automatically rail against it. With tightening loan standards I don’t think 100% financing is the problem.
The short sales, foreclosures and defualts that I hear about involve adjustable rate mortgages and stated income loans. I personally haven’t heard of a case of FHA or VA loans in default. I know they exist but it shows how much rarer they are.
Here is a link to a site that is pushing for Congress to reinstate DPA’s that was put up in the comments of my last post about DPA’s. Instead of making an entire bill or law, how about just changing the rules about who can give gifts? They realized that the “charitable organizations” were nothing more than the seller giving the buyer the downpayment. Money laundering. Let anyone “gift” the money to the buyer and give it a year to see the consequences.
photo via http://www.flickr.com/photos/squeakymarmot/
5 thoughts on “Downpayment Assistance”
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I agree that it is really important that everyone works together to try to save DPA programs. They have been nothing but a blessing for me and my family in helping us purchase a home, when we didn’t think it was possible. I have referred over twenty people I know to a DPA and they have had there homes as long as I have if not even longer. This October make four years!!! Thanks to companies like Nehemiah I was able to make a dream my reality.
The government could drop the rule that the downpayment came from a family member or a charity and Nehemiah and Ameridream wouldn’t have been needed. They also wouldn’t have cost the transaction $500 – $1000.
That would be more sensible.
What do I have to do to qualify for this program? I am a single mom with a 14 year old son. Do you think they could help? Thanks,Luz
What do I have to do to qualify for this program? I am a single mom with a 14 year old son. Do you think they could help? Thanks,
Luz
What do I have to do to qualify for this program? I am a single mom with a 14 year old son. Do you think they could help? Thanks,
Luz