Seller funded down payment assistance programs are set to be eliminated by this fall, unless Congress approves the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694). The Department of Housing and Urban Development apparently would rather eliminate these programs entirely than regulate them. The video above is from Ameridream, and I’m not sure if their numbers include homebuyers that used other down payment assistance programs (like Nehemiah), but the bottom line is that thousands of potential homebuyers will not be able to purchase homes if the programs are discontinued.
You can read my previous posts on the Nehemiah Program here:
- Nehemiah Program Explained (see first comment with an update from Scott Fournier, a lender, on the new bill in Congress)
- Nehemiah and Ameridream Downpayment Assistance Programs
(UPDATE: Congress is considering a reprieve! Read HERE)