Oh no. This is not what we need!
Washington Post, July 22, 2008 (P. D1; ElBoghdady, Dina)
Congress is expected to pass a broad housing package this week that includes language banning seller-funded down payment assistance programs. Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, says his chamber will cede to the Senate’s effort to end this type of aid – which the Bush administration has wanted to do for years. The Federal Housing Administration says borrowers who obtain down payment assistance from sellers go into foreclosure at nearly three times the rate of borrowers who pay out of their own pockets. Over the past decade, more than 500,000 people bought homes using a government-insured loan and a seller-funded down payment, including about 79,000 in 2007.
Read about FHA’s Nehemiah Program for down payment assistance.
[...] 7/22/08: Congress to Ban Downpayment Assistance Possibly related posts: (automatically generated)Ameridream Survives Mortgage MeltdownNehemiah Wins Judgment Decision In Lawsuit Against HUDDown Payment Assistance: The Nehemiah Program [...]
[...] payment for a house. All that came to a screeching halt last fall. Back on September 30, 2008, all down-payment assistance programs were banned by the government. If they banned the practice last fall, how can they bring it back this [...]