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The mortgage and
financial news this week has come quick and fast. We just
wanted to take a moment and help you fully understand what
is happening.
The House has approved the Foreclosure Bill and the President
has already signed it! The understanding is that after October
1st, 2008 there will be no Down Payment Assistance offered
any more. We will have 60+ days before this happens.
So if you are considering
owning a home at this point with Down Payment Assistance,
please contact us now so that we can prequalify you now
for a no money down FHA mortgage before they disappear.
It's amazing that
they would take Down Payment Assistance away without replacing
it with something else. This will eliminate a huge segment
of our population that suddenly cannot qualify for a home
mortgage.
You can still get your down payment from other sources
for a no money down FHA mortgage:
An outright
gift of the cash investment is acceptable if the donor is
the borrower’s relative, the borrower's employer or labor
union, a charitable organization, a governmental agency
or public entity that has a program to provide homeownership
assistance to low- and moderate-income families or first-time
homebuyers, or a close friend with a clearly defined and
documented interest in the borrower. The gift donor
may not be a person or entity with an interest in the sale
of the property, such as the seller, real estate agent or
broker, builder, or any entity associated with them.
The Down Payment Assistance (DPA) portion of the Bill
is as follows:
"SEC. 2113. Cash Investment Requirement and Prohibition
of Seller-Funded Down Payment
481
(C ) Prohibited Sources
In no case shall the funds required consist, in whole or
in part, of funds provided by any of the following parties
before, during, or after closing of the property sale: (i)The
seller or any other person or entity that financially benefits
from the transaction. Any third party or entity that is
reimbursed, directly or indirectly, by any of the parties
described in clause (i).
This paragraph shall apply only to mortgages for which the
mortgagee has issued credit approval for the borrower on
or after October 1, 2008."
Contact us today to get a no money down FHA mortgage
before they are gone!
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