HUD was ordered on October 31, 2007 by a Federal Judge to hold the implementation of FR5087 which would have eliminated seller-assisted Down Payment Assistance on FHA loans allowing DPA programs to be used through February 29, 2008!
FAQ
Q. How long can I use DPA?
A. As long as the Purchase Contract is dated by February 29, 2008, HUD has stated that they will accept DPA related transactions.
Q. What's next?
A. For all DPA's that are an official party of the lawsuit, there is a 4 month window of opportunity; however it is up to the Courts to ultimately decide if DPA is to operate permanently.
Q. What about the status of HR 1852?
A. This Bill has passed the House, with amendments that support the existence of DPA, The Senate Banking Committee is reviewing the Bill and it appears that they are not as supportive, however the Bill has not come up for a full vote. There are intense lobbying efforts in support of DPA coming from House members as well as others.
Here's an interesting look at the breakdown of DPA programs that lenders are using:
PREFERRED PROGRAM/HDGF 31%
AMERIDREAM 21%
NEHEMIAH 17%
A Myriad of Other Programs 31%
Even though Nehemiah and Ameridream are well known in the marketplace, we have used American Home Grant's DPA and have been very pleased with their service.
Stay tuned as the story continues to unfold...
:)
Views and opinions expressed on this site are not necessarily those of WR Starkey Mortgage.
Ruth Vogt, Branch Manager
Colorado LMB #LMB100023827
Only the DPA programs named in the injunction can be used. Included in this specific injunction were Partners In Charity, Futures Home Assistance Program, Sovereign Grant Alliance, Genesis Foundation, Home Downpayment Gift Foundation, Freedom Home Baptist Church, Dove Foundation. There may be other injunctions as well. I can not be certain I've named all.
That's a flat out lie!
All DPA programs that have not been revoked by the IRS, are still acceptable for use with FHA loans. The court enjoined HUD from enforcing the rule, period. It does not only apply to the ones that jumped on AmeriDream's bandwagon.
Further the Grant America Program received an injuction in their case at the same time. It appears that the shill for HDGF conveniently left them out.