The Fight to Save Down Payment Assistance Programs

August 26, 2008
By: Jones Team Blog (TN)

Last month, when the US Congress passed and President Bush signed into law sweeping new housing legislation, it was hailed by the media and the National Association of Realtors as a fantastic development for home buyers and sellers; the real estate industry; and the economy.

While some aspects of the new law (i.e. the up-to-$7,500 tax credit for first time home buyers) will likely be helpful to some consumers, one key provision of the legislation, which received very little coverage, was cause for major concern in our opinion. The elimination of down payment assistance programs (DPAs) looked to us like the government kicking the economy’s residential real estate sector when it was down. Especially here in Rutherford County where a large percentage of home buyers purchase in the “affordable” range, DPAs have helped make homeowners out of many families who otherwise would not have been able to achieve that distinction.

We estimate that 15 to 20 percent of prospective buyers in Rutherford County will no longer have the wherewithall to purchase homes once the DPAs are eliminated October 1. This puts unnecessary stress on the real estate market at the very moment it has begun to show signs of strengthening.

It turns out, however, that the DPAs are not going down without a fight. The two largest DPAs, AmeriDream and Nehemiah Corporation of America, have led the charge to pass legislation to save their kind from extinction. They are backing H.R. 6694 in the Senate.

If you need down payment assistance in order to buy a home, don’t sit around waiting for this new legislation to pass — because if it fails you will be left out in the cold. Get in touch with the Jones Team TODAY because, even though the clock is quickly ticking away, you still have time to take advantage of DPAs in your home purchase.

If you’ve been thinking of selling — especially if your home will be listed for less than $300,000 — don’t delay; get with us TODAY! On October 1, a huge number of potential buyers may suddenly disappear from the marketplace.

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For additional information, please contact Shelley Mitchell, smitchell@nehemiahcorp.org, 916-231-1999.

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