New hope for Nehemiah Down Payment Assistance-

images1.jpgLast Thursday new hope was brought forward by Congress in the form of HR6694. This bill will would reauthorize and reform seller funded down payment assistance programs (Nehemiah & Ameridream, etc).  The reform will require credit score minimums and more transparency on the part of the providers. Also in the current bill, language that allows FHA to permanently assess higher premiums for higher risk borrowers. This has been HUD’s main complaint that they are being asked to take on these high risk loans, and have not been able to increase premiums accordingly. This bill may change the Oct 1 deadline to use DPA programs in conjunction with FHA financing. This should be a busy month with FHA modernization. To date FHA is still 90% of the loan market helping people to buy homes and help current homeowners replace poor mortgages.

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