What FHA rules have changed? What about downpayments?
Clock ticking again on seller-funded down payments | Inman News
Clock ticking again on seller-funded down payments
HUD taking comments on FHA rule change until Aug. 15
By Inman News, Tuesday, June 17, 2008.Federal regulators on Monday renewed their efforts to ban seller-funded down-payment assistance on FHA-guaranteed loans, publishing a proposed rule and reopening the public comment period on the plan until Aug. 15.
The Department of Housing and Urban Development says allowing sellers or others with a financial stake in the sale of a home to fund down payments inflates home prices and triples the chance that a home will end up in foreclosure.
Tom in Florida sent this in and noted:
I found it through the BMIT blog, but federal legislation affects us all, one way or another.
I know of people who went zero down FHA including the closing costs, so it happens. That kind of easy credit will end soon. But who needs easy credit in the RBA? Will not Heaven itself ensure the RBA its birthright of “Always the high price, always?”
Well, today is August 16th, is anyone keeping up with the news on this? What changed yesterday?
Personally, I don’t think this will impact the Real Bay Area at all. Down payments are a breeze: some brokerages allow you to park unvested stock options. “Hello, I’ve got 2 pre-ipo shares of Facebook. Yep, that’s right – it’s 20% of the Palo Alto house.”
See? It’s just that easy. Either that, or you just wait until the end of the year when you get your big fat bonus for shipping the latest featured in your Web 2.0 social networking virtualization presence conversation iphone facebook app.
Sweet! This ain’t Florida, Tom in Florida!
August 16th, 2008 at 9:11 am
Don’t I know it!I knew you could show that things are different in the RBA, ergo the normal rules do not apply! Of course, if those shares tank…..
August 16th, 2008 at 10:25 am
Weaker hands getting shaken out of the market
867 S TANTAU AV, Cupertino, CA 95014 — 898K
motivated seller. expect more of the same in
the next few years until only the strong hands
remain.
August 16th, 2008 at 2:11 pm
This article is a month and a half out of date. HR 3221 already banned any kind of seller-funded down payment or closing cost assistance for FHA loans when it was signed into law July 30, effective October 1st.
August 16th, 2008 at 5:28 pm
Thanks, Sonarrat. HUD had actually banned seller-funded closing-cost and down-payment assistance back in October 2007, but a judge ruled against HUD’s decision and ordered an injunction against enactment of the ban. I guess that’s over. Now, anyone who wants to overturn the ban has to challenge the new foreclosure act.
August 16th, 2008 at 5:45 pm
This is three days, two hours and seventeen minutes out of date, but may be worth looking at anyway.
http://tinyurl.com/5ntkre
August 16th, 2008 at 6:19 pm
I appreciate knowing when I miss something. A lot of items get passed into law quietly, like the credit card tracking legislation that went into the housing bill, which seems to be mostly a modification of existing policy, but will make some business owners rethink the way they do buisness.
Of course, in the RBA, the new credit card tracking laws will mean a boon to CPAs, who will all have banner years and lead the housing market rebound next summer. Right.