New hope for Nehemiah Down Payment Assistance-
August 5, 2008 | Brian Lebars
Last Thursday new hope was brought forward by Congress in the form of HR6694. This bill will would reauthorize and reform seller funded down payment assistance programs (Nehemiah & Ameridream, etc). The reform will require credit score minimums and more transparency on the part of the providers. Also in the current bill, language that allows FHA to permanently assess higher premiums for higher risk borrowers. This has been HUD’s main complaint that they are being asked to take on these high risk loans, and have not been able to increase premiums accordingly. This bill may change the Oct 1 deadline to use DPA programs in conjunction with FHA financing. This should be a busy month with FHA modernization. To date FHA is still 90% of the loan market helping people to buy homes and help current homeowners replace poor mortgages.
For information on the article, information or promotion you just read about fill out the form below to receive more information.
The absence of this down payment assistance will be detrimental to not only our economy but to the American dream. This new bill to save DPA will effect most of us and we should support it!
Having worked in the nonprofit affordable housing and mortgage business for close to thirty years I’d have to say the Nehemiah approach is bad practice. It should not only be allowed to expire, practices similar should be illegal. It’s institutional fraud under the cover of homeownership opportunities. It’s a kick-back regardless of the name you give it.
I have to say I do agree with you. The overall housing market would benefit form having buyers with money in the purchase transaction. I am just fearful of what will happen when the DPA’s are gone. FHA and Nehemiah are making up over 90% of the purchase transactions that are taking place currently.