Down payment assistance for FHA loans to be eliminated
Gift programs for down payment assistance will be eliminated for FHA loans effective in October as part of the housing bill just passed by Congress. Gift programs such as Nehemiah and Ameridream have been especially popular with first time home buyers and are especially important to home builders. WSJ online reports:
"Starting in October, buyers using FHA loans can no longer accept down-payment "gifts" that are ultimately funded by the home seller, often a builder. Currently, the FHA allows a nonprofit group to gift the down-payment to the buyer. The nonprofit group is then reimbursed by the builder -- a practice the housing bill would stop."
Read more. And ask me about these programs if you would like to buy a home but don't have enough money for a down payment but your credit is good.