Ameridream, Nehemiah DPA Programs-Going Away?
July 24th, 2008 categories: Mortgage and Lending, Real Estate News
The House on Wednesday voted 272-152 to pass legislation that will offer up to $300 billion in assistance to troubled homeowners and give support to Fannie Mae and Freddie Ma.
The new Federal housing bill is expected to be signed into law very quickly in order to grant the Feds authority and the means to take over Fannie and Freddie. The President has already rescinded his earlier threat to veto and has now promised to sign.
In the new bill there is a provision to eliminate the FHA Seller Assisted Dowpayment Programs (ADP) through Nehemiah and AmeriDream. The bill gives a stop date for the programs of October 1, 2008, however, lenders will be permitted to discontinue the ADP at their discretion anytime before October 1!
There is opposition to the elimination of this program, but if you are thinking about buying a home in Phoenix with one of these programs, it might be time to get off the fence-time is not on your side.
If you are currently under contract with such a loan program, you should be ok, unless it is a short-sale transaction-which could take 2-3 months to close, in which you may be at risk of losing your financing, check with your lender for more detailed information.
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