Nehemiah Corporation of America, a national non-profit organization, has helped over 300,000 families who would have otherwise been locked out of homeownership due to lack of downpayment funds.
Both the House and Senate passed H.R. 3221, Housing and Economic Recovery Act of 2008, a comprehensive piece of legislation that addresses a variety of housing related issues. The bill contains a provision (SEC. 2113) that forbids FHA from insuring mortgages in which the borrower’s downpayment comes from a private downpayment assistance provider, beginning October 1, 2008. As of this date, the minimum downpayment will be increased from 3% to 3.5%.
The bill is headed for the President’s desk where his prompt signature is expected. With the stroke of the President’s pen, downpayment assistance will be shut down in the United States on October 1, 2008.
The consequences will be devastating! By FHA’s own estimates, DPA comprises nearly 40% of FHA’s volume. This means more than 300,000 working class families will be locked out of homeownership in the next year alone. Communities across America will take the brunt of the $50 billion in lost real estate sales, not to mention the indirect impact on the real estate, mortgage and building sectors that will be forced to shed tens of thousands of jobs due to this dangerous legislation.
Act Now! Contact your elected officials and urge them to introduce and pass a bill that allows downpayment assistance to endure. Failure to act now will ensure the death of all private downpayment assistance programs. www.getdownpayment.com
Nia Knowles:Westside West End Westview Atlanta REALTOR 