***** For Immediate release******
According to my lender at Wells Fargo, FHA made a surprise announcement today. All loans using Seller funded Down Payment Assistance must be sent to underwriting by August 29th and all loans must be signed, closed and funded on or before September 30th.
I have not seen an official statement from HUD/FHA on this yet but I don't want to see anyone needing this program to purchase a home get caught off guard.
If you have been dilly dallying around with the idea of buying a house, you better get off the fence, you have essentially 1 week to get pre-approved, find a house, get an offer accepted and submit it to underwriting.
This is very serious, if you miss out you will need 3.5% downpayment or no house.
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Seriously? No more Ameridream, etc???
Michael I knew it was coming to an end but, I thought as long as you closed by Sept 30th you would be fine.
nope, there is a bill in congress trying to reverse this but I wouldn't hold your breathe. Congress has bigger fish to fry right now.
Please put a link to the FHA announcement about this change in policy.
Richard
Larry,
FHA just released this today. I think showings and offers are going to pick up this weekend.
Yes please do if you have a link to the announcement that would be a world of help.
I cant beleave that this is going away! its going to make it hard
hhhmmm... maybe this is called advertisement on your part? HUD hasn't announced anything. Besides, they send out mortgagee letters when things like this happen. And investors also let the lenders know. Sorry for doubting you, but you share no links to this news. Anyone that has ever given news like this, has a link to where it was mentioned. Besides, HUD doesn't work this way and things need to be approved for something like this in a form of a bill and with Congress and the President signing it.
PS... who said it has ended anyhow... this is being fought in Congress with a new bill. It's kind of funny on how some people will milk this for more business. A rush? Who rushes into a house, just because of this?
Jeff,
It was sent to me by my lender at wells fargo. I doubt she would make this up. You are right that congress has introduced a bill and I did mention it in previous comments. I doubt this will get debated before the energy bill. I have been a big proponent of DPA and have called my senators and congressman to let them know. I am not fear pedaling, if my lender tells me that I have 1 week to get some people off the fence, then I feel th need to get the word out.
Michael.... if you were smart, you would have asked for the proof before putting a blog out like this. Anytime any news like this is announced? There is some sort of link to the news.... there is nothing on HUD's site... and I learned a long time ago, in a debate or when announcing something like this, always ask for the source. If the source can't be provided, there is only one thought then. I am sure you wouldn't want to be caught in it, right? Not calling her a liar, but I would have asked for the proof. Maybe it's Wells not doing this after the next week???? But from people I know, it doesn't sound like HUD making this statement.
Jeff,
It is possible that it is just wells. It is possible that I jumped the gun but I don't want any of the buyers who read my blog to get caught off guard. I really hope that the new legislation get's passed but I won't hold my breathe. I think that once we see the fallout from this they will have to re-debate the whole DPA.
Maybe someday we can pick up the debate over a piece of Olga's cheesecake
Mike...good to post this stuff, but I'm with Jeff. I'm the VP of a national company and it's simply not true. What your LO is telling you is the guidelines of Wells Fargo....not the guides of the industry. I came from Wells. Great company, but there are so many companies adjusting to HUD's 10/1 cutoff date in different ways. Your LO isn't speaking from knowledge. He's speaking from his copmany's perspective. Just an FYI.
Thanks Larry, I updated the post to reflect the source and that I haven't seen an official announcement from HUD. It is definetly not my intention to mislead anyone.
No worries....not there to blast you at all....just giving you my 1 and 1/2 half cents.
Michael... I know what your loan officer told you... and it's still under interpretation. HUD didn't come out with a mortgagee letter as of yet. Hence why some lenders are closing it down on their side as of now or sooner than what was mentioned. Again, I would ask your loan officer for a letter from HUD. I bet it was a letter from corporate making their own decision, but making it sound like it came from HUD. And if this is the case.... well, I will talk about that later.
Jeff,
I agree that a lot of lenders are shutting it down early. Wells is one of the most conservative lenders out there but that is why they haven't been bit as hard as others. I updated the blog to post to reflect the source and that I haven't seen an oficial announcement from HUD.
Enough real estate, how about our Phillies? We haven't been hitting a lick for 2 weeks now.
We talked with a lender today and he said they have two lenders can still get downpayment assistance done if the paperwork is in by Sept. 30th and it is funded by Oct 31. He said that it depends on the banks that you work with.
@ Patty & Scott.... not trying to sound rude here, but either you misunderstood your lender or they are completely wrong. HUD put out an announcement that it ends on 10/1/08. This was in the bill. There is no investor out there that would take that risk and go beyond that date. Why, because if no investor bought that loan or that FHA didn't insure the loan, then they are stuck with a loan or it would never close. That I can bank on.... and one thing that I can see that could be confusing. You said funded on the 31st. Closed or funded? We are a banker and we fund our own loans. But then we ship it off to an investor that buys it from us. We don't make our money until they fund it. I can see where this is going to lead to some major confusion.
Michael... no worries... I just try to practice what I preach... if I talk about anything that is my opinion, I try to state it in my post. If it is a fact, I try to have some sort of link in there from a respected source.
one thing to keep in mind.... I have seen dates of 8/26 and 8/29. One reason why I said that was misleading, what your Wells rep. said... it's not loans sent to underwriting. If it's a manual underwrite, the MCAW has to be signed by that date. ... not received by that date... but underwritten and the MCAW signed.
Wells Fargo is acting early to stop accepting DPA. But that was announced several days ago, not yesterday. There are many lenders who are going to accept DPA until the deadline, as FHA has communicated to everyone.
The final underwrite, the FINAL underwrite, must be done before October 1. The final MCAW cannot change at all after that dead line.
I was a little more worried about the DPA companies closing up early, but I met with an Ameridream rep yesterday. They are working diligently, and seem to think their case is strong enough to make a difference.
Richard
I got the following information from the Nehemiah website today.
A bill introduced by Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays on July 31, 2008, that would reinstate SF-DPA. If passed and signed into law, the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) will allow downpayment assistance to continue indefinitely.
They are looking for our support to keep these programs available. Check out their website at http://www.dpagroundswell.org/
Sorry about this, but you all seem more than a little lost in what is really happening with the downpayment assistance program. I have read what Nehemiah's website has to say and the housing bill was signed and passed by the president signing it a few weeks ago. There is a new bill though HR 6694 which would keep the program available. If you happen to call their customer service and ask about it they seem happy to fill you in. Their website is www.dpagroundswell.org and it has quite a bit of information on keeping this type of program available. I guess the powers that be, feel that we all have rich relatives to help in getting downpayments, so we won't need programs like these. Oh So Wrong!!! I will support keeping these type of programs available, because I don't happen to have any rich relatives.
I agree that we need to keep these programs alive but at this moment there has not been much movement towards getting this new bill passed. many of the lenders are ending this early and a lot of buyers are going to get caught out by this. Some people have given me crap about posting this information but I think we need to be aggressive in getting the word out so we can help as many people as possible before DPA goes away potentially for good.
Good luck to us all as far as the housing market is concerned. I have gone to the website and sent mutiple comments to my congress person. Every little bit helps.
@ Janet b.... but this is not for all lenders.... you can still use DPA programs until the end of this month, from the underwriting date.... I have written about this, but I didn't want to put the link in here... thanks, jeff