The recent legislation that Congress sent to the President, which he signed eliminates a program that many first time buyers have relied on and will miss once it is phased out on October 1st, 2008. Many banks are already pulling back from these seller funded down payment assistance programs in advance of the October 1st, 2008 date.
Ameridream, The Genesis Program and Nehemiah among the seller funded down payment assistance programs will fade into the sunset and be replaced by a federal tax credit that appears as if it will fall short of the job these programs acheived. There is a grass roots effort to fight off the demise of these programs.
Here’s a reprint from a Nehemiah Email announcing the grass roots effort to save the program.
If you feel as I do that this is an important program to help buyers acheive home ownership, please take the time to get involved and voice your support!
Nehemiah Corporation of America announced the launch of www.DPAGroundSwell.org, a web-based community established to mobilize the growing industry opposition to the October 1 ban on seller-funded downpayment assistance (SF-DPA). The ban on these programs was written into law by President Bush when he signed H.R. 3221 Housing and Economic Recovery Act of 2008 on July 30, 2008.
The site will bring together families and individual homeowners as well as industry groups and local members of the real estate market including brokers, bankers, lenders, homebuilders and others to provide a central information and communication hub to fight the ban.
Importantly, the site enables visitors to directly contact local representatives and offer support for a bill introduced by Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays on July 31, 2008, that would reinstate SF-DPA. If passed and signed into law, the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) will allow downpayment assistance to continue indefinitely.