"Skin in the Game" Yes or No?
August 7, 2008
The recently enacted Housing Bill of 2008 eliminates the down payment assistance programs. These programs, most frequently the Nehemiah and HART programs, have a seller contribute to these "not-for-profit" entities and these entities then contribute a like amount to the buyers down payment for the purchase of a home. FHA has been on a crusade to eliminate this down payment assistance because they believe that the chance of a default on the loan is greater when the buy has not had to come up with a portion of the purchase price; i.e."No Skin in the Game".
Another piece of legislation has been introduced in Congress that would allow these programs to continue.
What do you think? Skin in the game, yes or no?
Frankly it has been fairly common practice for the past decade for buyers to be able to purchase with 100% financing or with the use of a variety of housing assistance programs. I read in the Press Enterprise yesterday that the state of California has begun a program to assist buyers in purchasing bank owned houses with fixed rate, below market mortgages. The web site for the California Housing Finance Agency is http://www.calhfa.ca.gov/.
If you are a first time home buyer, now is clearly a good time to buy a house.
The recently enacted Housing Bill of 2008 eliminates the down payment assistance programs. These programs, most frequently the Nehemiah and HART programs, have a seller contribute to these "not-for-profit" entities and these entities then contribute a like amount to the buyers down payment for the purchase of a home. FHA has been on a crusade to eliminate this down payment assistance because they believe that the chance of a default on the loan is greater when the buy has not had to come up with a portion of the purchase price; i.e."No Skin in the Game".
Another piece of legislation has been introduced in Congress that would allow these programs to continue.
What do you think? Skin in the game, yes or no?
Frankly it has been fairly common practice for the past decade for buyers to be able to purchase with 100% financing or with the use of a variety of housing assistance programs. I read in the Press Enterprise yesterday that the state of California has begun a program to assist buyers in purchasing bank owned houses with fixed rate, below market mortgages. The web site for the California Housing Finance Agency is http://www.calhfa.ca.gov/.
If you are a first time home buyer, now is clearly a good time to buy a house.
posted by shirley harry at 8:42 AM
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