Comments on: Down Payment Assistance Now A Memory http://movingtonovabuzz.com/2008/09/05/down-payment-assistance-now-a-memory/ Real Estate Sales Market Reports And Information For Buyers and Sellers In Old Town, Del Ray, Kingstowne, and Manchester Lakes in Alexandria VA Fri, 18 May 2012 09:46:02 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Tamara Inzunza http://movingtonovabuzz.com/2008/09/05/down-payment-assistance-now-a-memory/#comment-199 Tamara Inzunza Fri, 12 Sep 2008 00:06:05 +0000 http://inzunza.realty-buzz.com/2008/09/05/down-payment-assistance-now-a-memory/#comment-199 I agree that if these programs are not available, the pool of buyers will indeed get smaller. However, I can also understand that if these programs have a high rate of default that the government would want to eliminate them. It's all about mitigating the losses right now, and the government is looking at everything...including the down payment assistance programs. What escapes me is why there is no push to make financial education mandatory is high school, and especially in college where credit card companies can easily entice college students with credit cards. When they get out of school, they are riddled with debt and the cycle of high debt and no savings has already begun. I agree that if these programs are not available, the pool of buyers will indeed get smaller. However, I can also understand that if these programs have a high rate of default that the government would want to eliminate them. It’s all about mitigating the losses right now, and the government is looking at everything…including the down payment assistance programs. What escapes me is why there is no push to make financial education mandatory is high school, and especially in college where credit card companies can easily entice college students with credit cards. When they get out of school, they are riddled with debt and the cycle of high debt and no savings has already begun.

]]> By: Michelle http://movingtonovabuzz.com/2008/09/05/down-payment-assistance-now-a-memory/#comment-198 Michelle Tue, 09 Sep 2008 23:53:59 +0000 http://inzunza.realty-buzz.com/2008/09/05/down-payment-assistance-now-a-memory/#comment-198 State of legislation H.R. 3221 The ban on downpayment assistance 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. Borrowers who are credit approved prior to October 1, 2008 can receive downpayment assistance and have their loan FHA-insured. While H.R. 3221 was intended to “rescue” the housing industry, the elimination of the DPA program will have the exact opposite effect of its intended purpose. 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. State of legislation
H.R. 3221
The ban on downpayment assistance 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. Borrowers who are credit approved prior to October 1, 2008 can receive downpayment assistance and have their loan FHA-insured.

While H.R. 3221 was intended to “rescue” the housing industry, the elimination of the DPA program will have the exact opposite effect of its intended purpose. 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.

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