Omnibus Housing Bill

Greg · #1 (**permalink**) 07-23-2008, 08:21 AM

House and Senate reached an agreement on the bill. It is for the most part final. The most tragic part of the bill is Seller Funded Down Payment Assistance Programs. It will be eliminated October 1st and your loans must be approved by September 30th per the bill.

The fight has been fought and that will leave VA and USDA as the sole remaining No Money Down loans.

http://www.rules.house.gov/110/text/110_atostohto3221.pdf

Barbaro · #2 (**permalink**) 07-23-2008, 09:54 AM

Ouch. This really sucks. How the hell does this make sense when demand is suffering SO MUCH already? Friggin government!

Greg · #3 (**permalink**) 07-23-2008, 09:59 AM

Reason is because the loans that have DPA have a 2-3 times higher default rate.

Greg · #4 (**permalink**) 07-25-2008, 01:25 PM

I heard a stat that scared me recently. 1 in 6 of all FHA mortgages are currently in default!!!

That is horrible!

Barbaro · #5 (**permalink**) 07-25-2008, 02:25 PM

That is almost unbelievable, too. Very very alarming!

Greg · #6 (**permalink**) 07-28-2008, 01:55 PM

The Mortgage Whistleblower » Blog Archive » The FHA Delinquency Crisis: 1 in 6 Borrowers in Default

Wamu is 1 out of every 2!! That is PATHETIC!

Barbaro · #7 (**permalink**) 07-28-2008, 03:20 PM

Unbelievable. How have they managed to do that? Seriously ridiculous.

Greg · #8 (**permalink**) 07-31-2008, 09:36 AM

So, it is signed. Tell your buyers about the 7500 tax credit for first time home buyers.

Greg · #9 (**permalink**) 07-31-2008, 09:36 AM

So, it is signed. Tell your buyers about the 7500 tax credit for first time home buyers.

Barbaro · #10 (**permalink**) 08-01-2008, 11:01 AM

I heard it is a credit but it must be repaid $500 a year until it is paid off. Odd.