While lying on it’s death bed it appears as though Seller Funded Down Payment Assistance may well be getting a reprieve. As many of you know, the Housing Stimulous Act of 2008 did away with Seller Funded DPA. Representative Al Greene (D-TX) has introduce H.R.6694 in the House of Representatives. This bill provides for the continuation of Seller Funded Down Payment Assistance by revising the requirements for seller funded down payments for mortgages for single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act.

Financial Services Committee Chairman Supports Bill

Chairman of the House Financial Services Committee, Barney Frank (D-MA), has discussed openly that he has negotiated an agreement with HUD Secretary Preston that will provide for the continuation of seller funded down payment assistance and has virtually guaranteed that it will pass the house. The agreement allows HUD to impose risk-based pricing on down payment assistance transactions which provides Secretary Preston the fiscal protection he desired for the FHA insurance fund.

No Companion Bill In The Senate

Currently there is no companion bill to H.R.6694 in the senate even though Senators are well aware that this bill exists in the house. Over the past several weeks I have communicated with Senator Johnny Isakson (R-GA) via email of my concerns of this avenue for buyer’s being done away with. In an email from Senator Isakson dated 9-8-2008 he states “H.R.6694 is currently being considered by the House Committee on Financial Services and at this time there is not a companion bill in the Senate. Rest assured I will keep your thoughts in mind when this legislation comes before me on the Senate floor.” This morning I sent Senator Isakson another communication suggesting that he introduce the companion bill into the senate for consideration.

Get The Ball Rolling

By at least getting the ball rolling perhaps this valuable program will not be lost. Buyer’s nationwide stand to loose this option effective October 1, 2008 if H.R.6694 and the companion bill, which current doesn’t exist, in the Senate do not go into law. For anyone concerned with this important legislation get in touch with your Senators and Representatives to let them know how you feel.