Housing and Economy Recovery Act H.R.3221
What you Need to Know
As of July 31, 2008, new legislation may prevent future home buyers who plan on using an FHA loan from buying a new home!!
Unbeknownst to many families who have future plans of buying a new home, H.R. 3221 contains a provision that would prohibit FHA from insuring any mortgages in which down payment assistance would come from a seller.
This provision goes into effect on October 1, 2008 and will prevent upwards of 82% of potential home buyers in Arizona from being able to purchase a new home.
Furthermore, the legislation in H.R. 3221 would prevent over 32,000 home owners from selling their homes to buyers needing 100% financing and using an FHA loan product.
QUICK FACTS – WHAT THIS MEANS TO YOU!
New home buyers who are planning on using FHA loans, and do not have 3% of their own money to use as down payment, will NOT be able to purchase a home unless H.R. 6694 is made into law!!
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Nationally, 4 out of 5 buyers are currently first time home buyers
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As of 8/18/08 There have been 42,427 homes sold year to date in Maricopa County
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There have been 33,927 homes sold within the FHA max price point of $356,000
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That's 80% of all transactions year to date involving FHA financing (NATIONALLY…IT’S ONLY 40%)
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THAT MEANS IF WE HADN'T HAD DOWN PAYMENT ASSISTANCE PROGRAMS AVAILABLE, IT IS CONCEIVABLE ONLY 8,530 FAMILIES WOULD HAVE BEEN ABLE TO GET FINANCED SO FAR THIS YEAR
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There are currently 37,817 listings in Maricopa County that are eligible for FHA financing
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That's 81% of all homes for sale in Maricopa county that can take advantage of down payment assistance programs.
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As of 8/18/08 4 major valley lenders have stopped accepting applications from customers needing down payment assistance 43 days before the Oct 1st cutoff, a contraction of available products is already occurring despite a recent ruling from HUD.
If a solution to H.R. 3221 is not found, buyers and sellers alike will be adversely affected! Valley wide home prices will drop even more, foreclosures will be sure to increase and most importantly, 67% of the homes will stay on the market without anyone to purchase them!
HOW YOU CAN HELP
NEW LEGISLATION (H.R. 6694)
As a potential solution to this prohibitive law, bipartisan legislation has been recommended by several members of the U.S. House of Representatives. The bill, H.R. 6694 is being sponsored by several U.S. Representative and would work to reinstate many of the guidelines surrounding nonprofit down payment assistance and maintain the option for an allowable gift source to come from the seller.
As with any new legislation, THIS BILL NEEDS MAJOR SUPPORT from constituents all across the U.S. in order to be signed into law. In an effort to help the bill gain momentum, please click on the button below and before homebuyers across the U.S. are left homeless!!
Notify President Bush and Congress that H.R.6694 needs to be passed immediately!!! |
