Congress to axe down-payment assistance programs
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Seller-funded down-payment assistance programs are set to be eliminated as part of broader housing legislation that Congress expects to pass by the end of the week, according to a report in the Washington Post.
Under these programs, third-party nonprofit organizations such as Neimiah and Futures provide home buyers with money to be used at closing in FHA transactions. They are then reimbursed by home sellers who also pay administration fees for the nonprofit’s services. More than half a million people have bought homes with down-payment assistance in the past ten years.
As conventional mortgage lenders have moved away from no-money-down loan products, ...
