This week the President signed H.R. 3221, Housing and Economic Recovery Act of 2008, into law. The bill contains a provision (SEC. 2113) which forbids FHA from insuring mortgages in which the borrower’s downpayment comes from a private downpayment assistance provider, beginning October 1, 2008. As of this date, the minimum downpayment will be increased from 3% to 3.5%.
The consequences will be devastating! By FHA's own estimates, DPA comprises nearly 40% of FHA's volume. This means more than 300,000 working class families will be locked out of homeownership in the next year alone. Communities across America will take the brunt of the $50 billion in lost real estate sales, not to mention the indirect impact on the real estate, mortgage and building sectors that will be forced to shed tens of thousands of jobs due to this dangerous legislation.
In order to save downpayment Assistance, we need to come together NOW to convince Congress to introduce and pass a bill that allows downpayment assistance to continue indefinitely.
Two Ways To Take Immediate Action...
Write Your Elected Officials
Please take a minute to submit your comment regarding the urgent need for legislation that allows for downpayment assistance to continue indefinitely.
Submit your comments through our Legislative Alerts and Updates page.
Call Your Elected Officials
A phone call to your U.S. Senators and House Representatives will make a huge impact to save private downpayment assistance programs.
Locate your elected officials
Go to Elected Officials
Enter Your Zip Code and click "Go".
Click on the link of the Representative you would like to call and then click on the Contact tab to find their Washington D.C. and District office phone number.
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Article written by the Nehemiah Program
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