No More Downpayment Help from Sellers

The new housing rescue  bill President Bush is expected to sign this week will really change things for buyers needing help with their down-payment.  Currently, there are FHA loan programs out there that allow the seller to contribute to the buyers down-payment (providing instant equity for buyers, and less out of pocket costs for buyers).  That ends October 1st, 2008.  All loans approved after that date CANNOT have the seller pay for the down-payment that is required for an FHA loan (currently 3% of a sales price).  This bill will also adjust the minimum FHA down-payment requirement from 3% to 3.5% which means you’ll need to have more money saved up if you are interested in buying a home.  There are many other details to this bill but these two features will effect many potential homebuyers.  Personally, three of my recent clients have used programs such as Ameridream, Genesis, Nehemiah that allow for the seller to pay the buyers down-payment. If you are considering buying property, and were interested in some type of zero down loan program where the seller would help with your down-payment then you must hurry and get pre-qualified for a mortgage loan NOW and start shopping for property.  Please feel welcome to post comments or questions. – Becky Wyatt