With the recent signing into law of the Housing and Economic Recovery Act of 2008, as of October 1, 2008 seller contributions (interested third parties) to non-profit down payment assistance programs are finished. Nehemiah Corporation of America, the leading non-profit down payment assistance provider in America, estimates that in the next year alone approximately 300,000 families will be locked out from buying a home due to this provision in the bill. Of course this may change as new legislation is being introduced to revive this type program, but with congress on vacation for 5 weeks (damn I wish I could do that) no one knows if or when the program would be reinstated.
What does this mean to First Time Home Buyers in Greater Atlanta? If you are looking to purchase a home using a down payment assistance program you need to get busy NOW. You must find your home and get closed by September 30, 2008 or you run the risk of not being able to utilize this type program. Also the minimum down payment will be increasing from 3% to 3.5%.
I have heard rumors of another program that will assist first time buyers and as soon as I can confirm it I will post it here. See you soon.
{ 3 comments… read them below or add one }
Hi,i was just searching for answers about the FHA debacle.Im approved for a FHA with down payment assistance and got the call from the bank that it will end at okt 1st.Wich was ok for me,we still have some time to shop around.The big chock was when my bank called and told me that it will end of AUGUST.This is totally not acceptable!!!What do you know about this?I live in Las Vegas,NV.Thank you!!
Hi Peder. While seller funded down payment assistance is ending on October 1, 2008, many of the lenders who write the loans are stopping them much sooner. I don’t know the Las Vegas market but would suggest that you contact Charles or Jackie Richie. You can get their contact information from their site http://www.lvrealty.net/.
Good Luck,
Mack
What I’m beginning to think is that there are new programs like this every year. Well at least there has been for the past two years. It’s just congress’ way of limiting the usage of certain programs. Some are of course better than others, but there’s really no way of telling what’s in store for the future.