Well, maybe your voice has been heard. Maybe it was the shot heard around the world. As news broke earlier today, in which there has been speculation that bill HR 3221, the "Housing and Economic Recovery Act of 2008, would be overturned, bill HR 6694 made strides today.
There are good signs stating that the down payment assistance programs, such as Nehemiah, AmeriDream, Genesis, and so many others, will be voted back in. It's not a done deal as of yet, but with the strong support from Congressman Barney Frank, who is the chairman of the House Financial Services Committee, has some promises on the table. One such promise on the table is that HR 6694 would allow all borrowers with credit scores 680 and above, to be able to use the seller-funded DPA programs. This is a huge start and a lot of this is from the support from people like you and I.
This kind of news won't keep me from taking back Down Payment Assistance Programs in Washington D.C. tomorrow afternoon. We still need everyone's support, to make the Senate aware of the ramifications of eliminating such down payment assistance programs.
Such elimination, in my opinion, would put another severe strain on the already strained housing market. And it could add a ripple affect to those houses on the market, adding more days not sold. If you think about it, if you are moving up, someone needs to buy your home and that is usually a first time homebuyer.
Conclusion :Some other things that HUD supports as a compromise to bill HR 6694 are :
- Borrowers with credit scores from 620 to 680 could be subject to higher insurance premiums. (I personally wouldn't have a problem with this)
- Borrowers with credit scores below 620 would be banned from using the down payment assistance program until mid 2009. ( I truly think that we could improve on this one. First off, why down to 620? Secondly, even people with credit scores of 570 or such can still have decent credit, under FHA's credit guidelines.
For more on this story, you can read about it here, at Inman News. http://www.inman.com/news/2008/09/10/congress-weighs-reprieve-seller-funded-gifts
UPDATE as of 9/11 - Mr. Belonger goes to Washington DC.
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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc
ummmm.... going back to read more throughly - very cool Jeff - best of luck with all you have on your plate - you are in my thoughts - go get em
Jeff: That would really be great news. There are so many buyers out there that meet the qualifications that you stated... but cannot buy. This will truly be of great help. Thanks for sharing.
Jeff - thanks for the update. Read what Brian had to say too. Hoping for the best as I think there are many buyers who can benefit from this. Time will tell.
Jeff
If it is felt these programs are good. They should just make it OK for the sellers to credit the buyers direct and do away with them.
Jeff thanks for this great news! DPA programs are what is helping move homes! Having them around for a longer period of time. Randy has a point too, why not just allow seller to give the credit under FHA guidlines? It would eliminate the additional party, not to mention the extra fee.
Time will tell... there are so many issues being raised each day, not to mention changes in the market. Thank goodness for people like you who can help people like me sort all of this out. My crystal ball has been on overload! Thank you Jeff for all you do.
I do hope for every ones sake that we can get some assistance from somewhere for family's that need this help. Keep on scrapping!
Thank you for the update. I continue to support and appreciate your efforts.
Jeff, let me know how it goes. I am so proud of you. Let's hope they do get voted back in. The credit score does seem low but it will still be available to many worthy borroweres.
Positive news. Hopefully more stringent credit requirements will keep dishonest lenders at bay.
Jeff,
Thanks for the post. This is really promising news. Thanks for keeping ActiveRain in the loop!
Hi Jeff - It was surprising to begin with that the Nehemiah, AmeriDream, Genesis programs were pulled. I suspect they will be back as well.
Hi Jeff,
Just wanted to stop by and let you know that we're behind you and cheering you on. Sic em!
Jeff, I read this article as well yesterday. I agree with you that the elimination of these programs will create a strain on the housing market. The problem that I see with the bill is that as of Oct. the ins. will not be risk-based and the other part is that they are already discussing loosening restraints on the assistance program as of next year. It just concerns me that be doing so we, the taxpayers, are being set up to harness more risk.
I just saw that late last night. I think we owe it all to you and your Million Man March on DC. Thanks for all you do....say yeah to the resurrection of the DPA.
Jeff, great work keep it up, you have tons of support from the trenches
Great Job Jeff, thanks for taking this on for the rest of us.
If they're going to put a credit limit like 680 as a rule for these DPA, I might have to have a change of heart with being happy for them to disappear.
Jeff - THanks for the update. A lot of my recent sales have been using the DPA programs. Even though some of these people didn't have to have it, they could use their cash for other dept removal.
I want to thank everyone for their comments and support - I have been very busy... Mr. Belonger goes to Washington DC. I will reply to all comments tonight. Thanks, jeff
Hi Jeff,
I enjoy your blogs, they're so informative. I actually commented on one of your related blogs "Are downpayment assistance programs really that bad?" I thought it was great.
I hope we hear more news soon regarding HR 6694 sooner rather than later, but this is encouraging. I have been checking www.dpagroundswell.org for updates, and listening to Scott Syphax's weekly Town Hall Meetings.
Jeff,
You and all those active supporters have done an excellent job of pushing this important issue. To all our AR members in Florida you can help by contacting your Senator and urging their support of the bill.
Contact information for
Senator Bill Nelson
United States Senate
716 Senate Hart Office Building
Washington, DC 20510
Phone: 202 224 5274 Fax: 202 228 2183 Website: http://billnelson.senate.gov/contact
Senator Mel Martinez
United States Senate
356 Russell Senate Office Building
Washington, DC 20510
Phone: 202 224 3041 Toll Free: 866 630 7106 Fax: 202 228 5171
Website: http://martinez.senate.gov/public
Every call, email or letter they receive will help our cause!
Gerry Suarez, Jr.
Your HUD Loan Pro!
Jeff, I'm looking forward to a post on your D.C. trip and effort. 'Hope you had a good turnout
I got that email and was elated to see some progress was being made. I have my fingers crossed that the senate comes around and see what a mistake was to complete ban this program
Jeff, excellent information. I truly hope that they do something to assist buyers. I fear that if they don't the situation will only grow worse.
Very Cool Jeff. By the way nice new pic
I wanted to thank everyone for the polite compliments. Hopefully we'll start to hear more about this shortly...
thanks
Well, I am definately a supporter of this program and the proposed changes. I received some promising letters from Congress and it appears they are finally listening.
They didn't listen to us on the bailout, but maybe they will get it right this time.