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!
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%
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...
Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.
Ruth Vogt, Sales Manager
#LMB100023827, NMLSR# 257576
Equal Housing Opportunity.
Regulated by the Division of Real Estate.