Down payment assistance program going going…

On October 1, 2008, the downpayment assistance program disappears.

This program combined with private lenders such as Ameridream, made it possible for people to add the down payment to their loan for a fee.  Many buyers who qualified for a loan but did not have money to put down or closing costs, would take advantage of this program.  It was one way to put buyers into homes and stimulate the market.

However, if people have no money to put down or enough for closing costs, isn’t this enabling a potential foreclosure? Getting into a mortgage they probably cannot afford and having no equity in it can lead to disaster. This, of course, is a generalization and does not apply to everyone.

First anyone with a pulse could get a loan. Now the guidelines are so stringent that qualified 800’s credit scores, 20% down buyers are not getting into their purchases because the underwriters are being too conservative.  Appraising is a bigger joke now in Columbus, Ohio than ever.

Everything was over appraised and over valued.  We know what happened there….

We are the second highest state for foreclosures….now ligitimate deals are falling apart because of appraisers going to the other end of the spectrum..either buyers have to put more down, sellers have to lower their price (even more) or the lenders raise the buyers’ rates because the LTV is not as great due to the “too low appraisal”

So if you want to “get the money” for your new home built in to your future mortgage..hurry up.  Otherwise, you might just have to do it the old fashioned way…save for your purchase and qualify!!!!