Comments on: FHA Seller Funded Down Payment Assistance Going Away

By: Bob Schenkenberger

Bob Schenkenberger — Sat, 27 Sep 2008 06:56:08 +0000

Anthony, I also have heard that is being lobbyed hard to get added to the bill.

I am following this closely, and will report back with new info here.

Thanks for stopping by!

By: Anthony Paul

Anthony Paul — Fri, 26 Sep 2008 15:35:38 +0000

I heard that seller funded DPA is going to be attached throught the congressional Mainstreet Stim. Package. Can any one confirm this? Rep Obey of Wisconsin has Chairs a committee that can sign the death warrant for DPA.

By: Political Humor

Political Humor — Sun, 14 Sep 2008 01:11:51 +0000

Interesting article. I really like your blog overall. Really makes me think! Thanks!

By: Balack Ogrima

Balack Ogrima — Sat, 06 Sep 2008 00:23:25 +0000

We work with volume homebuilders and I’m here to tell you… get ready for new home sales to be sliced in half (or more)PERMANENTLY as a huge %% of buyers are taken out of the pipeline. Builders who cater to first-time buyers are going to be devastated by this legistlation. Leave it to the government to screw up yet another program with unintended consequences. Should the government have its hand in this to begin with? We can argue that. But since DPAs have been around, an entire “housing industry” has grown up around them – and snagging them away will send that progress back 30 years. Sure, default rates are higher (2% vs. 1%)… but the VAST MAJORITY (98+%) of first-time buyers have no problem making their mortgage payment – hell, it’s usually way less than rent in those hot markets… but they have no savings (BECAUSE OF HIGH RENT – get it??) and find it impossible to come up with a downpayment, even if it’s only a few percent. AND, if those folks don’t get into a home that they own, they will continue to be unable to save BECAUSE OF HIGH RENT. Get it? So get ready for a prolonged national recession with a failed housing industry driving it.

By: Bob Schenkenberger

Bob Schenkenberger — Wed, 03 Sep 2008 17:36:09 +0000

Cherie, Agreed! A large percentage of our buyer business has used DPA programs over the last few years, and it will create a significant financing issue for many.

By: Cherie

Cherie — Wed, 03 Sep 2008 16:09:53 +0000

Non-profit downpayment assistance (DPA) is not any riskier than DPA gifts from family members or the government. Default claim rates for homeowners with an FHA loan after three years: no downpayment assistance is 3%, family/government assistance is 5%, DPA is 6%. I got this off of a website.

By: Cherie

Cherie — Wed, 03 Sep 2008 16:04:14 +0000

Everyone is saying that DPA programs lead to higher default rates. Give me the figures and then we can talk. Like John said, if DPA programs lead to higher default rates what about family members or grant programs from the counties.

By: John

John — Thu, 28 Aug 2008 21:05:57 +0000

I also believe the DPA programs are being scapegoated. If DPA led to higher default rates, wouldn’t they have tried to eliminate all gifted DP’s? I don’t see them trying to stop parents from gifting the DP to their kids.

By: Cherie

Cherie — Tue, 26 Aug 2008 20:28:05 +0000

DPA in my opinion is not the problem. It is the lenders that do not make sure all the buyers ducks are in a row. With DPA the buyer can save their reserves in their account and use it if they run into a snag later. Doing away with DPA will not let this happen. I feel this is not a good thing doing away with DPA. Here is a website I have found that you can let your voice be heard.

http://www.DPAGroundSwell.org

Check it out, the more voices for DPA the better!!! Lets keep these programs aroudn

By: Bob Schenkenberger

Bob Schenkenberger — Thu, 07 Aug 2008 04:01:48 +0000

Charles, I tend to agree. The more I look into this, the more I wish the Govt. would stay out of it!