OH NO! Nehemiah is going, GOING, GO..............................................

By
Mortgage and Lending with Seacoast Mortgage Corporation, RI (20021119LB & 20031576LL), MA (MC2107) & CT MLO 10920

The housing crisis will get worse if the down payment assistance programs go away!  These have been great programs for those who have little money and wish to keep their money as a "cushion" in the bank for those "rainy days". 

The price was increased by 3% and as long as the home appraised, the buyer financed 97% of the increased price, thus saving on placing a down payment. 

Soon the consumer will need to use up all their savings to place not 3% but 3.5% down on FHA loans.  Their "cushion" will be trashed and if there is any "rainy day", they will become part of the crisis.

WE NEED TO KEEP THESE PROGRAMS ALIVE!  Is anyone listening in the "Ivory Tower"?

Ann Sabbagh

Vice-President

Seacoast Mortgage

www.annsabbagh.com

 

Posted by

Ann Sabbagh, President

"The BEST compliment is a client referral: Thank YOUUU!"

Seacoast Mortgage Corporation

401-305-6906 or 508-243-1190

Residential & Commercial Financing

MLO10920

RIAR: teacher for "The Mortgage Course"; "Valuation of Commercial/Investment Real Estate"; "Reading Financial Statements"

 

"When you choose me as your mortgage consultant, you also choose a financial planner who cares about YOUR financial strength."

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Rainer
105,273
Travis Newton
Salem and Bend Oregon FHA, VA & USDA 503.931.4490 - Salem, OR
FHA, USDA, VA, LOAN EXPERT - Salem OR Homes For Heroes SALEM OREGON

agreed~

 

I've been thinking the same thing

Aug 26, 2008 07:46 PM #1
Rainer
82,609
Chris Horton
Horton's Lawn Care L.L.C. - Burton, MI

Ann- Getting rid of programs like this certainly will not help anything... I hope someone figures out something to keep it alive and well :-\

Aug 26, 2008 07:47 PM #2
Rainmaker
105,219
Brenda Harmon
Century 21 Beal, Inc College Station, Texas - College Station, TX

Ann,

Which IVORY TOWER would be most effective to call/write/email?

 

Aug 26, 2008 07:48 PM #3
Rainmaker
340,324
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

With each good there is a bit of bad .. the program was good in theory.. help home buyers supplement the home buying costs with Down Payment Assistance...

It became a bad thing when buyers would first loan approval then go out an shop at the top of the approved loan amount the roll closing costs into the loan and the pile DPA on top of that ... basically paying 106+% of asking price, additionally most of these home buyers had marginal credit at best.

So what was a great idea quickly turned bad and lead to many foreclosure .. heck why fight for a home that you have noting at stake in..

 

Aug 26, 2008 07:55 PM #4
Rainer
2,327
Pat Underwood
Long and Foster Roanoke Virginia - Roanoke, VA

My thoughts exactly Eric.  These loans should have been only for those with at least decent credit, rental history, job history, etc. 

Aug 26, 2008 08:31 PM #5
Rainmaker
340,324
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

As an agent that is heavy on listing .. I have seen offers written on properties that I felt at the time of listing were at the top end of the neighborhood price range.. and here the offered

Full price plus 3% closing cost 3% DPA and $495 DPA funding fee .. the agent did even try to bring the purchase price down to the bottom of the area market value .

Aug 26, 2008 08:43 PM #6
Anonymous
Peggy Sue

HR 6694 can help protect this slowly falling industry from caving in completely. HR 3221 raises the downpayment to 3.5%. Risk based pricing will raise MIPs, and once again the middle and low income families will be locked out of homeownership.

www.dpagroundswell.org allows you to write to your elected officials via email to support DPA reform. It also  offers a lot of facts about downpayment assistance and how it's helped thousands of buyers.

It's not too late. We need downpayment programs to pull this market out the slump and keep closing these deals!

Aug 28, 2008 01:22 AM #7
Rainer
157,551
Michael Kitsch
Coldwell Banker - Katy, TX

Now that Nehemiah is gone, what are you using and how do you like it?

Feb 02, 2011 12:57 PM #8
Rainmaker
114,857
Ann Sabbagh
Seacoast Mortgage Corporation, RI (20021119LB & 20031576LL), MA (MC2107) & CT - Pawtucket, RI
President, Sr. Loan Officer

Hi Cheryl, There is no replacement for Nehemiah.  The world is down to FHA: 3.5% down; USDA: 100%; VA: 100%, FNMA max 97%: all loans subject to their own FICO score & lending criteria.  I miss Nehemiah!

Feb 02, 2011 01:17 PM #9
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Rainmaker
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Ann Sabbagh

President, Sr. Loan Officer
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