I thought I would update this one.
10/1/2007 Legislation passed banning the use of downpayment assistance companies who charge a fee or are seller funded. View it
here.
10/1/2007 HUD was sued by all those companies and an injunction is pending.
As of now the deadline for honoring these transactions is purchase contracts dated no later than 10/31/2007
Expanding American Homeownership Act of 2007 passed in the house but still is undergoing modifications. Right now it is going to be 1.5% down required but it is still one of the most heavily debated items due to cancellation of seller paid dpa/fee based dpa. Loan limits should increase and mortgage insurance will become tiered based on credit.
So let's seek alternatives. Anyone know any??