Down Payment Assistance still has a chance

Just as we thought Down Payment Assistance was all but done, there comes a fight from within Congress to keep it. Down Payment Assistance is used to help low and middle-income consumers who are trying to obtain a home loan. It is mostly commonly associated with FHA loans. Under the previous law FHA loans require borrowers to put 3% down however it allows for seller paid Down Payments. The new housing bill that was signed into law last week eliminates Down Payment Assistance. It is estimated that Down Payment Assistance has helped over 700,000 people realize the dream of home ownership. Congress introduced bipartisan legislation, H.R. 6694 that would reauthorize and reform charitable Down Payment Assistance.. The legislation, sponsored by U.S. Reps. Al Green (D-TX), Gary Miller (R-CA), Maxine Waters (D-CA), and Christopher Shays (R-CT) reauthorizes and reforms charitable down payment assistance funded in part by sellers.
The Green-Miller-Waters-Shays plan would re-authorize and reform non-profit down payment assistance and secure it as an allowable source for FHA borrowers. The bill seeks to ensure that providers of the down payment 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.