According to my sources, the hammer has slammed down on the non-profit AmeriDream program bringing a close to this DPA chapter. The "heads up" is that if a home buyer is purchasing a home, their loan must be in process with a valid contract by August 29, 2008 and closed by September 30, 2008. I suspect that the Nehemiah program will soon be history as well, if it isn't already.
Typically, I play the devil's advocate and can see both sides, but I feel this is going to have a further negative impact on the housing market. As we're all aware, the onset of foreclosures and short sales has caused declining housing values and sent Fannie and Freddie running scared. The obvious positive is that buyers who were previously shut out of the housing market are slowly re-entering and taking advantage of the lower pricing. The profile of today's median price range buyer either needs assistance with closing costs, down payment or both. Without these entry level buyers, inventory will continue to mount fueling the fire for recession.
Debbie - I agree with your reasoning. If these programs which assist the first time buyers are no longer available then there will be an adverse effect on an already high inventory level.
Jennifer - Thank you for your input on this important matter and it looks like the Nehemiah program has gone by the wayside as well.
I read that the CEO of DR Horton was "suicidal" after seeing the loss of down payment assistance in the new legislation... saying, in essence that this would take 30% of the buyers out of the market at a time where housing needs buyers. I thought that was an extremely candid (if exaggerated) thing for the head of a fortune 500 company.
Hey Chuck...That's really extreme. I can certainly see 30% of the buyers disappearing in the market straight away though. You have a way of finding out insider information.
I have an Ameridream with a contract date of 8/26 and closing on 9/29...just under the wire. These folks are exactly why there should still be some sort of seller gifting program. They are both employed (nurse and police officer) but just graduated and have two greyhounds...what apartment will let greyhounds live there? They are great candidates for this plan and I'm so glad we got in under the wire.