Real Estate - DFW, Down Payment Assistance

As many of you probably have heard on Wednesday, July 30th, President Bush signed H.R. 3221, the Housing and Economic Recovery Act of 2008. This bill provides the biggest overhaul of the housing industry in decades. It has some great provisions for troubled homeowners facing foreclosure, and provides assurances for Fannie Mae and Freddie Mac. The downside, or what some might see as a downside, is that it does away with down payment assistance (DPA) programs. This means no more 100% loans available through the FHA, which roughly 40% of all FHA loans last year used some type of seller funded DPA.

What Does This Mean?

Beginning October 1, 2008, you will no longer be able to use DPA to get into a home. The downpayment for an FHA loan increases from 3% to 3.5%.

Example:

Buy a Home BEFORE September 30, 2008
House Price $100,000
Down Payment Required $3,000
Your Down Payment Cost $0 (Use assistance program)

Buy a Home AFTER September 30, 2008
House Price $100,000
Down Payment Required $3,500
Your Down Payment Cost $3,500

Waiting can cost you!!

If you want to take advantage of DPA before it expires- the time to buy in NOW!