The Department of Housing and Urban Development (HUD) has re-issued a proposed rule which would threaten the opportunity for low to moderate income families to access downpayment assistance by eliminating all private downpayment assistance programs. The public comment period ends August 15, 2008.
"Preserve private downpayment assistance programs for families who are credit-worthy, but lack the savings necessary to fulfill their homeownership goals, protect the already fragile economy, improve the current housing market, and save jobs."
In a time when inventories of homes are rising, it makes little sense to remove the ability to purchase a home for many qualified potential home buyers, who cannot make the required down payment, but can make the monthly mortgage payments. Downpayment assistance programs have helped me to assist my clients, primarily first time buyers, by getting them into a safe loan product. Help me keep these programs alive to assist my future clients by not prohibiting downpayment assistance. I suggest that changes be made to downpayment assistance to include new regulations that protects both the homebuyer and the FHA insurance fund by establishing some combination of blind appraisal, maximum gift percent, minimum LTV, or minimum debt-to-income ratio.
Please click on the following link to view more information and to contact your local Congressional representative and HUD to share your thoughts during. http://capwiz.com/nehemia/issues/alert/?alertid=11598811