Thursday, November 6, 2008

Update on HR 6694 - FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008

HR 6694 has not received any press lately, but many people have asked me if there were any updates. As of right now (November 6th, 2008), it has passed through the House Financial Services Committee, but has yet to be voted on by the House of refresh your memory, this legislation seeks to revive and revamp Seller-Funded Downpayment Assistance Programs (such as Nehemiah, Ameridream, etc.).

It still faces the possibility of being amended, and not only must it be voted on by the House of Representatives, but then the Senate, and then passed along to the President.

Don't hang your hat on this buyers...if seller-funded downpayment assistance returns, it won't be any time soon.

1 comment:

Anonymous said...

It should not be renewed. Seller-funded down payment plans are a SCAM - it is a way to avoid or pervert the entire purpose of a down payment.

What is a down payment? It is BUYER provided equity which minimizes the risk to the bank making a loan, and it ensures that the BUYER has skin in the game.

How does changing the price of a home (upward) to create a "down payment" for a buyer help anything? It does not. It is a way to cheat the bank into funding a larger loan than intended and it avoids the creation of equity and forced accountability for the buyers.