Zero Down Mortgage Loan Programs Are About To Vanish, Realtors Have You Called Your Buyers?
Posted Aug 17, 2008 @ 2:27 pm, Viewed by 575 Visitors, Read 629 Times.ATTENTION ALL REAL ESTATE AGENTS...
ALL Seller funded Down Payment Assistant Programs such as Nehemiah, HART and AmeriDream or funds from any other interested party (Yes, this includes the seller) to the transaction will be prohibited on all loans where final credit approval has not been established by September 30, 2008.
This means call all your buyer leads that have been sitting on the fence and tell them the urgency of finding a home within the next two weeks. I say the next two weeks, because we all know it is going to take 30 days to fund the loan, so if you don't have a house picked out and negotiated a signed purchase agreement to have in your lenders hands by September 1, 2008 you are going to be chasing your tail to close by September 30, 2008. This means at a minimum after September 30, 2008 all buyers will need a 3.5% down on their new home.
That was no mistake; they will need 3.5% down because according to The Housing and Economic Act of 2008 which was just passed, the minimum down payment required on all FHA loans increased to 3.5% from buyers, up from the previous 3%.
I'm not sure that every Realtor knows this and I am taking the time to write this blog to inform our fellow associates just as a courtesy. I know it's kind of embarrassing to think that real estate agents wouldn't know the latest and greatest news that could affect their paychecks for years to come, but I know not every Realtor knows this latest news, because I was just talking to an associate of mine a few days ago and she had no idea. Let’s not forget a lot of our associates are part time agents and think this business is so easy. After all don't we just show a couple houses, write an offer and collect our huge paycheck a couple days later?
For more information you can on the Metro Detroit Real Estate market you can visit my Metro Detroit Real Estate Blog. A lot of people keep asking for a FREE search of foreclosure homes in Michigan, well there it is. Enjoy.
MARK Z. & Associates
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Great news for DPA!
According to a recent article by: Matt Carter, Inman News, September 10, 2008:
“HR 6694 … is certain to pass the House of Representatives and has the blessing of the Department of Housing and Urban Development, Rep. Barney Frank, D-Mass., said at a hearing on foreclosures this weekend. The influential chairman of the House Financial Services Committee urged those attending a committee field hearing in Stockton Saturday to lobby the Senate -- which shoehorned language banning seller-funded gifts into HR 3221, the sweeping housing bill signed into law July 30 -- in support of the bill. Frank said the bill that would give seller-funded gifts a reprieve, HR 6694, has the support of HUD Secretary Steve Preston because it also addresses an issue near and dear to the department's heart -- risk-based pricing. HR 6694 … will pass the House, I can guarantee you. What you want to do now obviously is talk to your senators. We think it will go through there -- it has the approval now of the Secretary of HUD.”
We’re making progress here. Don’t give up. Let’s do what Rep. Barney Frank suggested … Contact your Senators TODAY!
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MARK Z. is one of the Top Realtors in Michigan. Mark Z SOLD over 75 homes in 2007 and on track to sell over 100 homes in 2008, because of his pro-active Internet marketing techniques. Read More
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As a single mom with a great job but no fat savings account, I am a firm supporter of downpayment assistance. Don’t believe everything you read … it is NOT too late to get your downpayment assistance! I've been reading up on this issue and have found some great information from Nehemiah's website. Members of Congress recently introduced The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694). If passed and signed into law, this will allow downpayment assistance to continue INDEFINITELY. These programs need our help to get the word out. Visit www.DPAGroundSwell.org, a web-based community established to mobilize the growing industry opposition to the October 1 ban on seller-funded downpayment assistance.