The Archives
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07.23.08Congress to axe down-payment assistance programsSeller-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, ...
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06.17.08FHA to ease seasoning requirementsOn Friday, the Bush administration announced that FHA was reducing title seasoning requirements for some properties in order to reduce the impact of foreclosures across the country. The previous policy, enacted in an effort to prevent property flipping, prohibited FHA in most circumstances from insuring a mortgage on a home owned by a seller for less than 90 days. Exempt from the 90-day seasoning requirement were properties sold by state- and federally-chartered financial institutions and government-sponsored entities such as Freddie Mac and Fannie Mae. As a result, many foreclosed-upon homes would sit vacant for 90 days before they could be purchased with ...