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Although there is a chance that legislation will bring seller assisted down payment gift programs back before the end of the year, the non profit DPA programs are officially dead as of October 1, 2008.

Mortgage applications have dropped precipitously over the last few weeks for other reasons, so it will be interesting to watch how the ban will affect home sales if it lasts very long. Although we do need to let the air out of this real estate/credit bubble, watching people hurt financially due to all this uncertainty in the mortgage market is painful for everyone.

As would be expected, detractors of the down payment assistance programs were out cheering today, while supporters were touting a recent report from the Congressional Budget Office on “The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008″ (H.R. 6694) which reportedly confirms that seller-financed DPA will generate $65 million over the next five years and save taxpayers $13 million next year.

Although the behind the scenes deal that had been arranged to save down payment assistance programs like Nehemiah, Ameridream and Futures was pushed to a cold back burner due to the current credit market crisis, word on the street is that it will be discussed again once a bailout bill has been worked out.


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Filed under: Down Payment Assistance

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