Thursday, October 4, 2007

Housing Finance Update-Downpayment Assistance

October 2, 2007 - FHA/HUD files rule in Federal Registry banning Privately-funded down payment assistance programs.

The new HUD rule means that home buyers can no longer rely on down payments provided by downpayment assistance programs, including the Genesis downpayment assistance program. The new HUD rule by the Federal Housing Administration was published in the Federal Register on Monday and is scheduled to take effect 30 days after publication.

However, AmeriDream, Inc. and Nehemiah have both announced that they filed suits in Federal Court to challenge the merits of HUD's rule and seek an injunction blocking the implementation of this rule.

Pursuant to an April 1998 settlement agreement resolving litigation between Nehemiah and HUD, the rule will go into effect six months after the date of its publication for the Nehemiah downpayment assistance program, only. During the six-month exemption period, Nehemiah will continue to provide families in need with important downpayment assistance and lead the fight against HUD's rule. Building and Loan will work with Nehemiah during the six-month exemption to provide downpayment assistance to families that require this program in order to realize their dream of homeownership.

FHA continues to provide highly competitive interest rates and mortgage insurance premiums for borrowers who have had credit challenges in the past as well as for those that have not.

There is 100% financing available. We will have new construction soon underway which will qualify for the rural housing loan and can build to suit many buyers under these construction guidelines. Call us today for details. 816-985-SOLD or 816-985-PAUL

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