Ameridream Responds to Ban on down payment assistance Programs
August 4, 2008
Last week, President Bush signed into law the housing stimulus package designed to help Americans stay in homes and prevent foreclosures.
Most importantly, the plan increased liquidity for Fannie Mae and Freddie Mac ultimately to stimulate Real Estate.
However, one of the contradictions in the legislation was the banning of Down Payment Assistance Programs (D
PA) that helped many homeowners in Greater Phoenix buy homes.
“Ann Ashburn, President of AmeriDream, Inc., issued the following statement :
“Eliminating charitable down payment assistance will slam the door on over 100,000 teachers, firefighters, working families and others who rely on these programs annually to become homeowners. ”
“We will continue to fight on behalf of low and moderate income families to preserve charitable down payment assistance and to help them achieve the American dream of home-ownership.”
“In the interim, supporters of down payment assistance should still make their voices heard by visiting www.supporthomeownership.com and telling HUD and Congress to regulate – not eliminate – down payment assistance.”
Home buyers in across Arizona were up in arms.
In fact, I wrote a post Down Payment Assistance Programs Banned by Law, in which I said ”
I understand the need to reduced loan exposure to riskier borrowers. However, in my opinion, limiting charitable down payments as a group is too broad.
Increasing income requirements, credit scores minimums, personal assets, requiring co-signers or reducing interest rates so payments for FHA approved buyers are some possible alternatives” to an outright ban.
As a result of the voices of homeowners ( and bloggers 
) 2 members of Congress introduced a new bill to revise this ban on Down payment assistance.
The pending draft would change, revise and regulate who would qualify under programs like Ameridream; not outlaw and ban charitable down payment assistance completely.
The Bill To revise the requirements for seller-financed down payments for
“mortgages for single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act and to authorize
risk-based insurance premiums for certain mortgagors under such mortgages.”
I want to commend the efforts of Arizona home buyers, lobbyists and Congressman to move swiftly to support a revised draft of the Housing Stimulus Package to support down payment assistance programs on a per case basis; not ban them all together.
Many of the buyers are not qualified and should be denied a loan for many reasons. However, qualified buyers should not be painted with the same broad stroke.
Many who can benefit from these DPA programs, like Ameridream, should not be denied to purchase a home if the other levels of underwriting are met.
In my opinion this ban is another form of profiling and/or blockbusting; a violation of American Civil liberties.
Call you Congressman or visit www.supporthomeownership.com .
Let your voice be heard.
____________________________________________________________________________
Copyright © 2008 By James Wexler, All Rights Reserved. *Ameridream Responds to Ban on down payment assistance Programs*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
Related Posts
Comments
2 Responses to “Ameridream Responds to Ban on down payment assistance Programs”
Got something to say?
MLS search -- Phoenix Area Homes for sale
-
Phoenix Area Homes for Sale
I am glad that someone in congress understands the importance of these programs. By not allow the seller assistance programs to FHA buyers our market would just continue to suffer. Good Article and thanks for the update
-Tom
Great blog and very infomative. I will become a regular visitor! And thank you for developing this subject. I too am glad that Arizonans are stepping in to preserve this valuable service to homebuyers.