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According to the good folks at the Nehemiah Corporation, Rep. Barney Frank’s committee will be meeting on September 16th to push H. R. 6694, the bill which will return seller assisted down payment programs to the market provided the Senate can pass it as well, out to the entire House of Representatives.

The program will be substantially different than it has been in the past. As Nehemiah understands it, this time around the program will require a 680 credit score in order to avoid risk based mortgage insurance. With borrower credit scores which fall between 620 and 679, loans using seller assisted down payment programs will require the borrower to pay risk based mortgage insurance. All borrowers using these programs will be required to pass a home buyer’s education program. Most significantly, it appears that there will be no lenience whatsoever for exceeding the program debt ratio limits.

Loan officers should go to http://getdownpayment.com for training materials on how the program works. Sellers, buyers and real estate agents DO NOT understand how the program works, so you can make great strides toward becoming their “go to” lender if you can effectively help these transactions come together. Loan officers who take the time to get FHA training, understand how these programs work, and stay up to date on the rapidly changing FHA marketplace can still succeed in today’s horrible market.

Take the time to go to http://www.DPAgroundswell.org to keep the pressure on your representatives and senators.


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Filed under: Down Payment Assistance

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