Listings,New Construction,Buyers,Foreclosure,short sale and all the active homes in the Northern Virginia area including Fairfax, Loudoun, Prince William, Arlington & Alexandria.
Welcome to Ritu Desai- Fairfax/Loudoun County Realtor in Northern Virginia Sign in | Help

Fairfax, Loudoun County Virginia -Residential Real Estate Market Blog

Keep yourself up to date with the Northern Virginia Real Estate market. Have a question or thinking about buying or selling home I am just a phone call away at 703-625-4949 or email me at Info@eNOVAHomes.com

Tags

News

  • Northern Virginia -Fairfax, Loudoun, Alexandria, Arlington & Prince William Blog, real estate Market condition written by Ritu Desai at Samson Properties
Down Payment Assistance Update-Please pass it along

What is Down Payment Assistance program?

Down payment assistance or DPA programs where credit to help first time buyers who have good credit but not enough savings to achieve American dream to own a home.

How do they work? 


In simple terms, a down-payment assistance program involves having a home seller provide a home buyer with cash for a down payment. By taking part in this program, a seller can potentially attract a larger number of homebuyers to his or her property. But it’s a bit more complicated than that. Because a federal housing regulation prohibits a seller from directly giving a buyer down-payment money, a third party must be involved. These are the administrators of down-payment assistance programs.

They oversee the transfer of money from the seller to the non-profit organization. In turn, the organization gives the home buyer a similar amount for the down payment on the home (the nonprofit takes a piece of the deal through a percentage of the transaction -- typically one percent -- or a flat fee). The gift is treated as a down payment. The buyer has no part in the transfer of funds, and he or she is not required to pay it back.

Down payments covered by these programs generally fall in the range of three percent to six percent of the home’s selling cost.

Then what happened?


As all good things come to end due to our government intervention. The government banned the practice on Oct. 1 2008, citing higher default rates on mortgages secured with assisted down payments.

How can I reinstate the program?

Please read the message below! Please pass the word and let’s get this program back up again!

******** 

There is renewed hope that DPA will be reinstated! Similar to legislation from the fall, H.R. 600 has been introduced. If passed, the FHA Seller-Financed Downpayment Reform Act of 2009, would reinstate downpayment assistance and in turn help revive the struggling housing market.

As promised, The Genesis Foundation has continued to fight for legislation to reinstate downpayment assistance. We recognize the negative impact of denying thousands of qualified FHA homebuyers has had on the struggling housing market.

We need your help. Let your voice be heard. Show your support for homeownership and express your desire to revive the housing market. Tell Congress to Support H.R. 600. Contact your elected officials through RallyForHomeownership.org. We will continue to keep you updated as progress is made. Updates are also available online at www.preferredprogram.org.

To More Abundant Life,

Kelly Schwedland, President
PreferredProgram by the Genesis Foundation
866-570-0830

Posted: Tuesday, January 27, 2009 11:13 AM by Ritu Desai

Comments

No Comments

Leave a Comment

(required)

(required)

(optional)

(required)

Comment Notification

Subscribe to this post's comments using RSS