Important News and Techniques for Today's Real Estate Market

ALERT:

Just wanted to share with you that lenders in the know are telling me that the Down Payment Assistance Programs are coming closer to extinction, and may have as little as 2 to 3 months left before becoming unavailable to buyers.  And yes, this is DESPITE court battles allowing programs like Ameridream and Nehemiah to continue to operate.

For those of you who are not familiar with how these programs work, the seller is allowed to contribute--on behalf of the buyer-- up to 6% of the sales price as a down payment.  This money was deposited with a 3rd party provider (like Ameridream or Nehemiah), so an administration fee was also required (typically $250 - $400).

The most common contribution amount has been 3%, which was what the FHA formerly required as a minimum down payment for FHA loans. 

If you are thinking of waiting more than 4 or 5 months before you make your home purchase, PLEASE do not depend on the seller being able to participate in your required minimum down payment.  The FHA guidelines have shifted in the amount that you will be required to put down from 3% to 1.5%, but it is looking more and more like this amount MUST COME WITHOUT ANY ASSISTANCE FROM THE SELLER.

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