Last week the Federal Housing Administration ruled against seller assisted downpayment programs such as Nehemiah and AmeriDream. FHA cites poor loan performance and higher sales prices to borrowers as their reasons for discontinuing them. The ruling will go into effect November 1 of this year.
The Nehemiah Program and AmeriDream provide much needed relief to first time homebuyers by assisting them with the standard 3% downpayment required by FHA. From my eight years in real estate I can definitely attest that the number one reason people do not purchase a home is lack of a substantial downpayment--in this region we could be talking about $10,000 to $20,000.
Nehemiah and AmeriDream believe that HUD is taking the wrong course of action at a time when all other types of financing has dried up and are seeking to overturn the decision in courts.
What is your opinion regarding the FHA ruling? Are you for it or against it?
Wednesday, October 3, 2007
FHA Sturring Up Another Affordability Crisis
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