Save Downpayment Assistance Programs
Since 1997, downpayment assistance (DPA) programs have helped more than 1 million families become homeowners. But the Housing and Economic Recovery Act of 2008 eliminated these programs when President Bush signed it into law on July 30, 2008.
While that housing bill was intended to "rescue" the housing industry, the elimination of the DPA program will have the exact opposite effect. Not only did it eliminate DPA programs, it also instituted a downpayment requirement increase from 3 percent to 3.5 percent. This combination is a recipe for disaster and will further hurt the already crippled housing market.
Fortunately, Congress has worked to remedy the problem. The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) would allow downpayment assistance programs to continue, help families who are credit-worthy, protect the already fragile economy, improve the current housing market and save jobs.
Urge your representative to support H.R. 6694 today!
Dear Representative,
I am writing to urge your support for H.R. 6694, the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008. This new legislation will reform and save downpayment assistance for hundreds of thousands of homebuyers each year.
The Housing and Economic Recovery Act of 2008 eliminated downpayment assistance (DPA) 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.
Currently, roughly 40 percent of the monthly FHA loan origination volume utilizes downpayment assistance to help lower-income Americans meet the previously mandated 3 percent downpayment requirement. It is estimated that 10-25 percent of potential homebuyers (approximately 50,000 nationwide) will have no way of securing homeownership with DPA programs. With the stroke of the president's pen, millions of deserving Americans are now left with zero alternatives for attaining homeownership.
H.R. 6694 will fix that.
[Your comment here]
Downpayment assistance provides an opportunity for borrowers who can afford a mortgage payment but don't have the downpayment to get the process started. Please support H.R. 6694.
