On July 30, 2008 President Bush signed The Housing & Economic Recovery Act of 2008 into law. An important piece of this legislation involves the availability of charitable gift programs that low- and middle-income families can use for downpayment and closing cost assistance.
These Downpayment Assistance Programs (DPAs) have been extended to October 1, 2008. After October 1, these programs will cease to exist. Loan applications that are originated prior to October 1 will remain unaffected even if the loan doesn't close until sometime after the October 1 deadline.
On August 1, 2008, Congress introduced H.R.6694 that would reauthorize and reform DPA programs. The Green-Miller-Waters-Shays plan would re-authorize and reform non-profit downpayment assistance and secure it as an allowable source for FHA borrowers. The bill seeks to ensure that providers of the downpayment assistance operate in a transparent manner to guard against conflicts of interest. The bill also includes language to ensure that FHA maintains its financial stability by permanently authorizing the Secretary to assess higher premiums to higher risk borrowers.
It is important that you contact your elected officials in Congress and tell them that you support downpayment assistance and urge them to support H. R. 6694. To reach your elected officials, please call the US Capitol Switchboard at 202.224.3121.
To learn how you can support it, visit www.supporthomeownership.com.
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