Seller-financed Down Payment Assistance programs (DPAs) are slated to end on October 1 due to the “wisdom” of bureaucrats in Washington.
Some argue that those buying homes using Ameridream, Nehemiah and other such programs are more likely to default on their mortgage. While my personal experience with Ameridream users is minute compared to the grand scheme of things, without fail every single buyer we’ve helped that used Ameridream is still in their home and making timely payments. Others report similar experiences.
Fed about to shut down Down Payment Assistance Programs
There is a bill currently being discussed that could resuscitate DPAs. Here is a video that is making the rounds as the campaign for H.R. 6694 builds steam. HUD says they could regulate and control the program, but instead the powers to be have chosen to just lop it off at the knees, let it bleed out, and eliminate it.
Well that makes perfect sense. . .
Hat tip to Arizona Mortgage Team.
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I will freely admit that if more people had their own money invested in their homes we might not be bogged down in the current mess that is the housing market. And of course some people abuse DPAs. But to cut off a program that helps tens of thousands first time buyers get into a home (and helps tens of thousands sell their home) just seems incredibly short sighted. While I am not a fan of government regulation, I’m even less enthralled with government ineptitude.