Comments on: First time buyers and the down payment assistance program. http://wallaceandkelly.com/2008/09/17/first-time-buyers-and-the-down-payment-assistance-program/ "All Things Real Estate and Some Other Stuff Too..." Wed, 12 Oct 2011 15:29:57 -0700 hourly 1 http://wordpress.org/?v=3.1.3 By: Mary http://wallaceandkelly.com/2008/09/17/first-time-buyers-and-the-down-payment-assistance-program/comment-page-1/#comment-80 Mary Thu, 18 Sep 2008 17:23:37 +0000 http://wallaceandkelly.com/?p=160#comment-80 Hi Kelly, Thanks for the call out on the DPAGroundSwell. Unfortunately, banks are reluctant to approve any kind of lending lately. Here's to things looking up. Take care, Mary Hi Kelly,

Thanks for the call out on the DPAGroundSwell.
Unfortunately, banks are reluctant to approve any kind of lending lately.

Here’s to things looking up.

Take care,

Mary

]]> By: Mike http://wallaceandkelly.com/2008/09/17/first-time-buyers-and-the-down-payment-assistance-program/comment-page-1/#comment-79 Mike Wed, 17 Sep 2008 21:08:46 +0000 http://wallaceandkelly.com/?p=160#comment-79 Mary, Great comment and I couldn't agree more. If you check deeper into our blog you will see where we put a call out to people to help with a link to DPAGroundSwell. http://wallaceandkelly.com/page/2/. However all this that you speak of does not change the real world application of the DPA and the banks reluctance to accept offers from buyers using these types of loans. And as of now the banks control a majority of the homes on the market for resale. You make absolutely excellent points and at times I wish we all lived in Utopia. Thank you taking the time to read our blog we welcome your comments. Kelly... Mary,
Great comment and I couldn’t agree more. If you check deeper into our blog you will see where we put a call out to people to help with a link to DPAGroundSwell. http://wallaceandkelly.com/page/2/.
However all this that you speak of does not change the real world application of the DPA and the banks reluctance to accept offers from buyers using these types of loans. And as of now the banks control a majority of the homes on the market for resale.
You make absolutely excellent points and at times I wish we all lived in Utopia.
Thank you taking the time to read our blog we welcome your comments.

Kelly…

]]> By: Mary http://wallaceandkelly.com/2008/09/17/first-time-buyers-and-the-down-payment-assistance-program/comment-page-1/#comment-78 Mary Wed, 17 Sep 2008 20:33:56 +0000 http://wallaceandkelly.com/?p=160#comment-78 Actually, nonprofit downpayment assistance (DPA) is not any riskier than DPA gifts from family members or the government. Here are some statistics that I found. Default claim rates for homeowners with an FHA loan after three years are as follows: • With no downpayment assistance - 3% • Family/government assistance - 5% • DPA - 6%. It is important to note that these are not subprime loans, which are the main cause of the current problems in the housing market not DPA. Buyers cannot get loans for more than the appraised value of the house. Using these programs correctly does not inflate the value of the home. If used correctly, the home actually will have 3 - 6% equity upon closing for the buyers not zero. Eliminating DPA will devastate the already terrible housing market. The great news is that the House Financial Services Committee passed the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694). This is a bill introduced on July 31 that would reinstate seller-funded DPA. If passed and signed into law, it will allow downpayment assistance to continue indefinitely. If you agree here are a couple of ways that you can help. Visit www.DPAGroundSwell.org, a web-based community established to mobilize the growing industry opposition to the October 1 ban on seller-funded downpayment assistance (SF-DPA). Click or copy and paste this link and it will take you to the page to send a letter. It takes 2 seconds it has pre-written paragraphs that you can pick easily to express your view on it. (leave out the ones that don't apply) and when you fill out your contact info with address and zip it automatically sends to your representatives. http://capwiz.com/nehemia/issues/alert/?alertid=11709431 Thank you for your time. Actually, nonprofit downpayment assistance (DPA) is not any riskier than DPA gifts from family members or the government.

Here are some statistics that I found. Default claim rates for homeowners with an FHA loan after three years are as follows:
• With no downpayment assistance – 3%
• Family/government assistance – 5%
• DPA – 6%.

It is important to note that these are not subprime loans, which are the main cause of the current problems in the housing market not DPA. Buyers cannot get loans for more than the appraised value of the house. Using these programs correctly does not inflate the value of the home. If used correctly, the home actually will have 3 – 6% equity upon closing for the buyers not zero.

Eliminating DPA will devastate the already terrible housing market.

The great news is that the House Financial Services Committee passed the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694). This is a bill introduced on July 31 that would reinstate seller-funded DPA. If passed and signed into law, it will allow downpayment assistance to continue indefinitely.

If you agree here are a couple of ways that you can help.

Visit http://www.DPAGroundSwell.org, a web-based community established to mobilize the growing industry opposition to the October 1 ban on seller-funded downpayment assistance (SF-DPA).

Click or copy and paste this link and it will take you to the page to send a letter. It takes 2 seconds it has pre-written paragraphs that you can pick easily to express your view on it. (leave out the ones that don’t apply) and when you fill out your contact info with address and zip it automatically sends to your representatives.
http://capwiz.com/nehemia/issues/alert/?alertid=11709431

Thank you for your time.

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