Is Down Payment Assistance Coming Back?

First Time Home Buyer

I agree 100% with Eric of SC. My husband and I were approved right after the down payment assistance programs were banned. I must I was greatly disappointed. We have two children and the apartment setting is not a place I would hope to raise our children. They have no backyard to run around in and play. Our neighbors are constantly complaining about the noise from our children. It is becoming a headache. With the way the economy is going, we do not have $6000 to put down for a downpayment on a house. We have lived in the same apartment for over 5 years. We are responsible people and it is not fair to say that become someone receives assistance that they will eventually go into default on their mortgage loan. We do not have family members to help us and frankly if we did I really would not want to plead for assistance from them.

Kim of OR @ Jan 17, 2009 18:58:15 PM

Mortgage banker

I understand Mr Howard's position, but feel like he is missing the mark. HUD did in fact rule that down payment assistance from non-profits was legal. The president and his administration needed to give the appearance they were doing something to help stop the bleeding in the finance industry and found one of several scapegoats in down payment assistance. If you look at the delinquincy rates of FHA loans that used DPA, you'd find them performing better than those in which the down payment was a gift from a family member.

If you truly want to get the housing market back, then bringing back DPA would be a great start. There are thousands of foreclosed homes on the market that otherwise qualified buyers could be purchasing.

Terry of IN @ Dec 03, 2008 09:15:59 AM

First Time Buyers!

FRUSTRATED IN CALIFORNIA: Im a 32 yr old nurse, my husband a 32 year old mold maker, we have 3 kids (ages 13, 3 and 1) live in So. Cal, in a very nice area close to the beach. We pay $2100.00 monthly rent, child care, cars, food and all other normal monthly expenses. Its impossible for us to save up any money!! We have good income, good credit, but no savings. The down payment assitance program would really be ideal for us to become homeowners. The thought that we are crooks or frauds for wanting this is offensive!!

Melissa of CA @ Nov 17, 2008 18:08:23 PM

Paul Howard is right

The reason the administration proposed the ban, is that the program doesn't work. FHA loans with DAP have far higher default rates than those without them. It matters if people have money at risk (even if it's from a relative), and seller-funded kickbacks to non-profits contributed to buyers simply do not work. It needs to be changed.

of @ Oct 20, 2008 18:31:17 PM

Another First Time Home buyer

My husband and I finally repaired our credit in hopes to get a house this year. We were pre-approved and then we were told that down payment is no longer available. We have 4 children and we have been working hard for the past 10 years to save what we can, but we do need assistance with a down payment. We should not have to be punished for those Americans who purchased houses they could not afford. I hope they bring back DPA so we can buy our first home and began to build precious memories with our children.

of NJ @ Oct 03, 2008 12:32:59 PM

Also first time homebuyer

My husband and I are currently in the process of buying our first home. We were able to be pre-approved for a mortgage, however on October 1st we called our mortgage company to complete our application process, and was told that we would not be able to receive any down payment assistance. I had no idea that the ban went into effect. We are a hard working family, with two young children just trying to invest in our future, and now it only seems to be a goal much further away than we thought.

serena johnson of NJ @ Oct 02, 2008 22:30:37 PM

First time home buyer

Here's where the current bill hurts many middle class people. I'm a first time home buyer. Unfortunately, I didn't know that these programs were slated to expire. I saved for two years to buy a home and wanted to do it with no money down so I could have a padded bank/savings account to fall back on if something unexpected happens. I have outstanding credit and have no problem getting approved for a FHA loan as I already have. The problem is that now they want the 3 percent and other fees without the availability of assistance. Now, tell me, if you have stellar credit and a good job (6 years for the same company) doesn't it make since that you should be able to buy a home. In my opinion, the problem is people who didn't have credit and asked for more than what they could afford were granted loans. Now FHA is claiming 2 out of 3 loans have defaulted. That's because these companies had no regulation and were allowed to make these loans and then sell them. This happens because the current administration turned a blind eye. Now, people like me, with good credit, a decent savings account can not enjoy the same benefits as unqualified buyers did the past two or three years. All that needs to be done is reform the Assistant Programs to qualified buyers.

Michael of AL @ Oct 02, 2008 01:06:42 AM

The real reason for the Ban on DPA

If one gives this some serious thought I bet you will realize the "REAL REASON for the Ban on DPA" is: so the RICH INVESTORS are able to buy and hoard up all the distressed properties at a minimal price with a low interest rate loan(they most likely need the interest as a tax deduction or would just pay cash)

When the housing market starts to recover, they will just stick it to the people who truley need a decent place for their families to live (either via rent or sale of the property). The same families that would have and should have been able to purchase the same house at reasonable price and decent interest rate in the first place if they had been allowed funding using the DPA.

Just one more case of the RICH getting RICHER while the rest of us have to struggle each step of the way.

WHERE'S THE AMERICAN DREAM NOW?

D. Hidalgo of WA @ Sep 27, 2008 18:18:50 PM