Down payment assistance programs, or DAP’s as they are commonly referred to, were popular grant and loan programs designed to help low income Tampa home and condo buyers purchase a property with very little money down. Notice I said “were†â€" DAP’s have recently been all but outlawed with the reversal in underwriting guidelines.
DAP’s were touted by not-for-profit charities and other organizations as a way to make home ownership more affordable to first time home buyers and other low income residents throughout Florida and elsewhere. While it may sound perfectly acceptable for a charity to provide financial assistance to a poor family wishing to purchase a home, the “devil†is in the details. One of the primary underwriting rules associated with FHA and HUD homes is that a seller cannot provide down payment assistance to the buyer; only family members, government agencies and charities. This was to prevent sellers from increasing the cost of the home to cover the down payment assistance…which makes sense when you think about it.
Since DAP’s were a charity, they operated in a legal loop-hole where the seller would pay closing costs and the buyer would finance the down payment required to purchase FHA properties; resulting in a zero down-payment situation. Of course, it also resulted in zero equity for buyers and increased foreclosure rates on properties where buyers had little incentive to keep the home. Research from the Department of Housing and Urban Development indicates the rate of foreclosures is significantly higher than similar loans with a typical 3 percent down payment and closing costs.
In step the H.R. 3221, Housing Economic Recovery Act of 2008. One of the provisions contained in this bill requires the loophole to be closed â€" effectively dealing a death blow to DAP’s who work with FHA or HUD home sales. Critics point out this will negatively impact the ability of first time home buyers to afford new homes at a time when homes sales have fallen dramatically. Sellers could also be hurt since marginal buyers have one less resource available when it comes to purchasing Tampa real estate or condos for sale.
The bottom line is down payment assistance programs geared toward first time and low income home buyers are quickly becoming a thing of the past. Expect to see a return to FHA and HUD loans that require 3 to 5 percent down payment even for the lowest income brackets. Sellers wishing to attract low income or first time home buyers should acquaint themselves with other programs designed to assist buyers in affording a first home.
Thursday, June 18, 2009
Real Estate Questions and Answers
A few question going on for renting out my property?
Firstly- i have lb70,000 equity in my current house contained by which i am hoping to split for a deposit on a new place for my self and a buy to let mortage. How should i split the...
A few question just about buying a home.?
What is a usual down costs on a house? What humane of money do I involve to be making organized to procure a nice loan amount for buying a home? What is a standard monthly payoff? (I know this...
A few years ago I took out a loan on my house & didn't realize it be a "Interest Only" Loan until in a minute.
I'm sure you own see on the communication lately nearly adjectives these individuals that enjoy lost their home or are in the region of...
A FINANCE company for mobile homes?
I AM TRYING TO FIND A FINANCE COMPANY THAT WILL REFINANCE A MOBILE HOME AND TIE PERSONAL LOANS INTO IT AS WELL. ALSO A COMPANY THAT WILL ALLOW AN ALLOWANCE INTO THE LOAN TO DO SOME HOME REPAIRS?? THIS IS...
A flawless home collateral system i.e. not self installed, not a dog and doesn't require a 3 year contract?
I have a great watch dog. I do not contemplate I could install a system myself but surely there is a reliable system that doesn't lock you into three...
A friend and I are starting a clean video gaming business contained by Hawaii. We call for a christen! :)?
Its going to be a type of video gaming place like an internet cafe of video games. Any help?
A Friend is living beside a in a minute ex-boyfriend, she is not on the lease, be in attendance for 2 years. Need serve!?
She has been living contained by the apt. for almost 2 years, the lease is in his name. She have yet to...
A friend of mine and me is thinking of starting a business of renting scooters on a shore. How much money..?
How much money do you think we would need to attain started? I figure upwards of $100k or close to it. I dont want to...
A friend of mine be given a Will,the will states he will preserve:?
his Grandpas house. The Gp. single put this in black and white. My friend wants to budge through Probate. Can he hold on to the house or does The State acquire the house? Are at hand...
A give somebody the third degree something like my building..Am I not dangerous?
I have a crappy hotelier. I have a shaft in the front room and it have a crack in it. It is not purely the first layer. I notice it's in the roof beam...
A guy owes me money?
I did some electrical work for a guy a good 3 months ago and he has not salaried me I have told him several times to pay up but have still not made any payment. My dad told me about something call a...
A home worth $123,000 and a mortgage of $72, 400 would own what equity?
a home worth $123,000 and a mortgage of $72, 400 would have what equity? and also.. A home will an assessed value of $178,000 near a tax rate of $52 per...
A honourable baptize for a crew?
we are opening a nightclub and need a describe for the commercial for example when they say the name "at club pajarito brought to you by _________" and thats wher the heading would go please help any design will do...
A hostess at a resturant?
I'm 15, turning 16 in June. I really want money for summer and other things.. I can't handle brass at all, so i wouldn't want to work at a fast food place I be thinking of a hostess, because it's pretty easy, right?...
A house is $1,000 4 bed, 2bath striking neighborhood is in that any arrest to this?
the house is located on Dorais ST. N.E. $200 down, and $5 a month
A House next to wood frame...?
I found a house that im within love next to! it have a wood frame... How much more is house insurance going to be? We live in tampa nouns florida.
A house that be assessed at 70,800.00 ending year 07 would be worth what this year 08?
Keep in mind the decline contained by the housing market, and the certainty that the house has exotic windows, flooring, paint and other small repairs done since 07. Note:...
A housing issue?
My husband and I are have to find a house, and we don't hold satisfactory money to put down on the house. So we plan on getting 100% financing can someone narrate me what this will do to us. What style of mortgage should...
A interrogate for former FSBO? why did you swich to a Realtor? 10 pts to best answer.?
Why did you swich from selling FSBO? what made you do it? please tell me the short version of your experience. what made you choose the agent you go with?
A interrogate in the order of Avon?
I really need help if not I'm going to be screwed. If you sell Avon or have sold it contained by the past, what would you do if you lost the cut out portion of your invoice that you have to...
A interrogate reg Housing Rent vocabulary practiced within Bangalore?
On the below items, Is it praciticed? and if so, is it correct? 1. 1 month rent is deducted from the deposit during vacate? in compensation to the possible unfilled house because frequently the tennents...
A legal representative from another country ,ivory coast west africa name barrister kings henshaw,how doi findoutmore info?
the companies name is , the royal chambers and partner,legalpractitioner,solicitors,ad... of the superior court, 32 ave . dugaullie 11 plateaux,ivoire coast west africa tele:011-225-04-32-64-47 fax:011-225-21-26-80-16 web:www.royalchambers.tk lawyer name: barrister kings...
A limp palm tree fell on our coupé at our condo.?
A dead palm tree fell on our car within its assigned parking space and damage the hood. WHEN the condo board was contacted they said to hail as our car insurance that they are not responsible....
A loan for a home: I lately co-signed on a sports car, That sports car have be refinance, am I equipped for a lender all the same?
I recently co-signed on a motor for a family associate, and they didn't miss a payment or even manufacture a...
A lost title surrounded by Texas?
I'm currently in the process of selling some land beside a mobile home on it. But lo and behold...by pure bad luck, I end up losing the deeds to everything I own. I be able to get the creation...
A moniker for my college house??!!?
I am in college and I only lease a house for subsequent year. All of the houses surrounded by the town hold name. Some of them are funny, or sexual, or purely crazy joke. I'm looking for a cute, creative...
A mortgage for a trailor on its own environment surrounded by the city?
My boyfriend and I are in the process of buying a home. We found a double wide trailer close to work within the city. (Not in a park. It is on its own acre of...
A mound owns a house that simply come out of foreclosure contained by my nouns, why did it step from 43k to 12k?
It be second sold within 2004 for 43k. Now it is priced at 12k. The realtor stated that the house is priced suitably and that it's...
A neighbour have stored some materials on my estate and refuse to remove it.Can i move it and dispatch him a bill?
I enjoy tried to settle amicably but he is a bully and will not sense.The materials,lumps of stone and tyres hold be at hand since i bought...
A potential renter of my townhouse is getting upset because I'm requiring rent surrounded by finance.Isn't this standard?
i.e. paying rent by March 31st for the month of April.
A press for landlords or leasing agents?
I live in a pretty nice apt. consequence they are in virtuous shape and things, for the most part, are taken meticulousness of when needed. When i came to look at the apt it be daytime. I should have come...
A private tenant ask me to do a western confederation verbs on my dub to my partner mark?
and to scan and send it to him via email before i own seen the flat to prove that i have the money for deposit and that we will pick...
A query for agents. - Homebuyer.?
I am contained by the process of waiting on a counter-offer from a dealer. It is a forecloser. The home is contained by great condition--no sea defile, verbs, etc.. On the encyclopaedia it say the "merchant will not turn on electricity". Does this...
A query for Realtors?
I was a Realtor for 5 years so I know how things work. Now I work for the Pest Inspector who did adjectives my termite inspections when I was Realtor. The problem I'm have is that when the Buyers Agent orders the termite...
A Question About Business Plans?
There is a section in the business plan where on earth I need to talk in the order of the staff that I shall have to work for me, and there is another passage named "operations" where I obligation to talk about my...
A Question About Making Money From The Property Ladder?
There are 2 ways to make money from property: 1) A property is purchased, put on rent and if the monthly rent is greater than the mortgage, a profit is being made. 2) A proprty is purchased,...
A really upright convincing?
we are doing a small lawn service me and my friend were 13 and we are doing spring cleaning because we are good for laptops. what should we say when we walk up to a doorto convince them really really honourable so we can...
Firstly- i have lb70,000 equity in my current house contained by which i am hoping to split for a deposit on a new place for my self and a buy to let mortage. How should i split the...
A few question just about buying a home.?
What is a usual down costs on a house? What humane of money do I involve to be making organized to procure a nice loan amount for buying a home? What is a standard monthly payoff? (I know this...
A few years ago I took out a loan on my house & didn't realize it be a "Interest Only" Loan until in a minute.
I'm sure you own see on the communication lately nearly adjectives these individuals that enjoy lost their home or are in the region of...
A FINANCE company for mobile homes?
I AM TRYING TO FIND A FINANCE COMPANY THAT WILL REFINANCE A MOBILE HOME AND TIE PERSONAL LOANS INTO IT AS WELL. ALSO A COMPANY THAT WILL ALLOW AN ALLOWANCE INTO THE LOAN TO DO SOME HOME REPAIRS?? THIS IS...
A flawless home collateral system i.e. not self installed, not a dog and doesn't require a 3 year contract?
I have a great watch dog. I do not contemplate I could install a system myself but surely there is a reliable system that doesn't lock you into three...
A friend and I are starting a clean video gaming business contained by Hawaii. We call for a christen! :)?
Its going to be a type of video gaming place like an internet cafe of video games. Any help?
A Friend is living beside a in a minute ex-boyfriend, she is not on the lease, be in attendance for 2 years. Need serve!?
She has been living contained by the apt. for almost 2 years, the lease is in his name. She have yet to...
A friend of mine and me is thinking of starting a business of renting scooters on a shore. How much money..?
How much money do you think we would need to attain started? I figure upwards of $100k or close to it. I dont want to...
A friend of mine be given a Will,the will states he will preserve:?
his Grandpas house. The Gp. single put this in black and white. My friend wants to budge through Probate. Can he hold on to the house or does The State acquire the house? Are at hand...
A give somebody the third degree something like my building..Am I not dangerous?
I have a crappy hotelier. I have a shaft in the front room and it have a crack in it. It is not purely the first layer. I notice it's in the roof beam...
A guy owes me money?
I did some electrical work for a guy a good 3 months ago and he has not salaried me I have told him several times to pay up but have still not made any payment. My dad told me about something call a...
A home worth $123,000 and a mortgage of $72, 400 would own what equity?
a home worth $123,000 and a mortgage of $72, 400 would have what equity? and also.. A home will an assessed value of $178,000 near a tax rate of $52 per...
A honourable baptize for a crew?
we are opening a nightclub and need a describe for the commercial for example when they say the name "at club pajarito brought to you by _________" and thats wher the heading would go please help any design will do...
A hostess at a resturant?
I'm 15, turning 16 in June. I really want money for summer and other things.. I can't handle brass at all, so i wouldn't want to work at a fast food place I be thinking of a hostess, because it's pretty easy, right?...
A house is $1,000 4 bed, 2bath striking neighborhood is in that any arrest to this?
the house is located on Dorais ST. N.E. $200 down, and $5 a month
A House next to wood frame...?
I found a house that im within love next to! it have a wood frame... How much more is house insurance going to be? We live in tampa nouns florida.
A house that be assessed at 70,800.00 ending year 07 would be worth what this year 08?
Keep in mind the decline contained by the housing market, and the certainty that the house has exotic windows, flooring, paint and other small repairs done since 07. Note:...
A housing issue?
My husband and I are have to find a house, and we don't hold satisfactory money to put down on the house. So we plan on getting 100% financing can someone narrate me what this will do to us. What style of mortgage should...
A interrogate for former FSBO? why did you swich to a Realtor? 10 pts to best answer.?
Why did you swich from selling FSBO? what made you do it? please tell me the short version of your experience. what made you choose the agent you go with?
A interrogate in the order of Avon?
I really need help if not I'm going to be screwed. If you sell Avon or have sold it contained by the past, what would you do if you lost the cut out portion of your invoice that you have to...
A interrogate reg Housing Rent vocabulary practiced within Bangalore?
On the below items, Is it praciticed? and if so, is it correct? 1. 1 month rent is deducted from the deposit during vacate? in compensation to the possible unfilled house because frequently the tennents...
A legal representative from another country ,ivory coast west africa name barrister kings henshaw,how doi findoutmore info?
the companies name is , the royal chambers and partner,legalpractitioner,solicitors,ad... of the superior court, 32 ave . dugaullie 11 plateaux,ivoire coast west africa tele:011-225-04-32-64-47 fax:011-225-21-26-80-16 web:www.royalchambers.tk lawyer name: barrister kings...
A limp palm tree fell on our coupé at our condo.?
A dead palm tree fell on our car within its assigned parking space and damage the hood. WHEN the condo board was contacted they said to hail as our car insurance that they are not responsible....
A loan for a home: I lately co-signed on a sports car, That sports car have be refinance, am I equipped for a lender all the same?
I recently co-signed on a motor for a family associate, and they didn't miss a payment or even manufacture a...
A lost title surrounded by Texas?
I'm currently in the process of selling some land beside a mobile home on it. But lo and behold...by pure bad luck, I end up losing the deeds to everything I own. I be able to get the creation...
A moniker for my college house??!!?
I am in college and I only lease a house for subsequent year. All of the houses surrounded by the town hold name. Some of them are funny, or sexual, or purely crazy joke. I'm looking for a cute, creative...
A mortgage for a trailor on its own environment surrounded by the city?
My boyfriend and I are in the process of buying a home. We found a double wide trailer close to work within the city. (Not in a park. It is on its own acre of...
A mound owns a house that simply come out of foreclosure contained by my nouns, why did it step from 43k to 12k?
It be second sold within 2004 for 43k. Now it is priced at 12k. The realtor stated that the house is priced suitably and that it's...
A neighbour have stored some materials on my estate and refuse to remove it.Can i move it and dispatch him a bill?
I enjoy tried to settle amicably but he is a bully and will not sense.The materials,lumps of stone and tyres hold be at hand since i bought...
A potential renter of my townhouse is getting upset because I'm requiring rent surrounded by finance.Isn't this standard?
i.e. paying rent by March 31st for the month of April.
A press for landlords or leasing agents?
I live in a pretty nice apt. consequence they are in virtuous shape and things, for the most part, are taken meticulousness of when needed. When i came to look at the apt it be daytime. I should have come...
A private tenant ask me to do a western confederation verbs on my dub to my partner mark?
and to scan and send it to him via email before i own seen the flat to prove that i have the money for deposit and that we will pick...
A query for agents. - Homebuyer.?
I am contained by the process of waiting on a counter-offer from a dealer. It is a forecloser. The home is contained by great condition--no sea defile, verbs, etc.. On the encyclopaedia it say the "merchant will not turn on electricity". Does this...
A query for Realtors?
I was a Realtor for 5 years so I know how things work. Now I work for the Pest Inspector who did adjectives my termite inspections when I was Realtor. The problem I'm have is that when the Buyers Agent orders the termite...
A Question About Business Plans?
There is a section in the business plan where on earth I need to talk in the order of the staff that I shall have to work for me, and there is another passage named "operations" where I obligation to talk about my...
A Question About Making Money From The Property Ladder?
There are 2 ways to make money from property: 1) A property is purchased, put on rent and if the monthly rent is greater than the mortgage, a profit is being made. 2) A proprty is purchased,...
A really upright convincing?
we are doing a small lawn service me and my friend were 13 and we are doing spring cleaning because we are good for laptops. what should we say when we walk up to a doorto convince them really really honourable so we can...
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