Down payment assistance programs eliminated.
It will be interesting to see what will happen when the law passed which will prohibit seller assisted down payment assistance. Huds reasoning to enact this law was they feel it causes artificially inflated prices on homes. With eliminating these programs hundreds of thousands of potential home buyers will not be able to buy. This no doubt will cause the real estate market to decline even further in my opinion. We won’t have to worry about artificial prices we will be dealing with “real” declining prices.
This will bring more bad news to the real estate market.We will most likely see an increase in home sales in September with many buyers rushing to take advantage of the seller assisted ameridream and nehamiah programs before they end on October 1st. WIth no alternative set in place we are sure to see a decrease in sales October. There has been discussion of just making the fha 100% loan instead of the current 97%. All I know is there needs to be something done as the housing crisis will just get worse with increasing inflation with more and more american wealth continuing to decrease.
{ 3 comments }
This is what I read off the following website http://www.dpagroundswell.org.
A bill introduced by Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays on July 31, 2008, that would reinstate SF-DPA. If passed and signed into law, the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) will allow downpayment assistance to continue indefinitely.
You can voice your support for the bill on the website.
Hi Vicki Thanks for the info it looks like that bill may pass.
Wow, I never knew that
Down Payment Assistance Law. That’s pretty interesting…
Comments on this entry are closed.