Sunday, August 24, 2008
New Hope for Down Payment Assistance Bill
Congressman Al Green has introduced; HR 6694 the FHA Gift Downpayment Reform and Risk Based Pricing Authorization Act of 2008.
This will bring back the FHA seller downpayment assistance programs for certain buyers within three different classifications based on credit scores. Those buyers with a FICO score above 679 will be allowed FHA seller downpayments under the current HUD guidelines.
The next group is those buyers within the FICO scores of 620 to 679. These buyers will pay a risk-based mortgage insurance premium and 1.25% of the principal will be the annual premium. Then lastly the buyers with a score of less then 620 will be subject to HUD established risk based pricing.
Among non-governmental non-profits, The Nehemiah Corporation of America has been leading the charge on this issue.