Housing Bill Ends Downpayment Assitantance
By Jerry on Jul 31, 2008 in Buyer Answers
The President Bush signed this week the HR 3221, Housing and Economic Recovery Act of 2008, into law.
The bill contains a provision (SEC 2113) which forbids FHA from insuring mortgages in which the borrower’s down payment comes from a private down payment assistance provider such as Nehemiah.
Many buyer’s who were in need of down payment assistance, were taking advantage of the services provided by Nehemiah by requesting the seller to donate “X” amount of money to Nehemiah Corporation of America (A private down payment assistance provider), and then Nehemiah, for a small fee, would turn around and apply that money towards the buyer recurring and non-recurring closing cost.
Effective October 1st, 2008…Buyer’s will not be able to utilize the benefits of the Nehemiah program.
This means more than 300,000 families will be locked out of home ownership in the next year alone
