There is a "new" bill in Congress (I say "new" because it was originally introduced on January 16, 2009) that would reinstate FHA seller financed down payment assistance.
H.R. 600 was introduced by Rep. All Green (D-TX) and has 23 additional sponsors. This bill, if passed, would revive the down payment assistance programs that were so popular before the mortgage meltdown and the foreclosure wave that has hit the US real estate market.
This bill differs from the previous Down Payment Assistance programs in that a buyer would need a credit score of 680 or higher to qualify. Which supports say would lessen the risk of foreclosure. The majority of foreclosures that have happened in recent months have been with loans given to buyers with credit scores south of 600.
So, the question is, is this the magic tool that will kick-start our real estate industry? Let's think about it this way. Seventy percent of all first time buyers who purchased a home using the now expired tax credit, stated that they would have purchased a home anyway. The tax credit just gave them the incentive to do it a little earlier. The cost of the tax credit is placed on the government, which eventually gets passed to the tax payers. So why not have a program where the seller helps the buyer with the down payment, instead of the tax payers. This could work.
Below is a link to a video giving more information about this program:
http://www.thinkbigworksmall.com/mypage/archive/1/52128/
Also, if you would like to read the bill, here the link for that:
http://www.govtrack.us/congress/billtext.xpd?bill=h111-600
This may be a great way to breathe some life into the US Real Estate Industry, which is on of the major drivers of the entire US Economy. If you agree with this bill, contact your representative and tell them to take a look at this bill, a see what can be done to get it passed.
And as always, if you need any assistance with any real estate related issue, just contact me. I'm always happy to help!
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