The passage of down payment assistance is vital to the housing community, even if there must be risked base pricing attached. Without DPA the housing market is going to grind to a stop. Out here in the trenches about 80% of the house purchasing business is from those people able to use DPA's. We need to move some of the housing inventory to get this market stabilized and we can't do without the down payment assistance. Most Americans don't save money and we will have to wait 2-3 years for most to have enough
money to meet the FHA down payment requirement.

Not sure how often this gets updated but this passed the House Financial Services Committee on the 16th of this month.

I agree with "mtgegn" above, the passing of HR 6694 is essential for the housing industry. I am also out in the trenches (22 yrs) and I have never seen it like this. Just about every FHA loan I do has DPA and seller paid costs. Risked based pricing for MI is almost a non-issue-if you don't have a down payment, you're paying a higher MI, case closed. Don't like it? Don't use it. I don't believe any of my clients would have had a problem with it.
Most of the buyers using this program are buying starter homes, which allow for the "move-ups" stimulating the property ladder effect.

Seller-funded DPA is the next mortgage fraud implementer!

In the past, I have heard and agreed with the FHA/HUD logic supporting the elimination of Seller-funded DPA in FHA transactions. This logic included such valid claims such as; Seller-funded DPA is all too frequently worked into the purchase price by the Builder/Seller inflating his/her purchase price enough to cover the DPA incentive. As if this were not reason enough to call for the elimination of Seller-funded DPA, we now know that the problematic impact of Seller-funded DPA goes much farther and deeper than just the Builder/Seller manipulating his/her purchase price! Seller-funded DPA would have disappeared long ago if the financial community realized just how much and to what extent Seller-funded DPA incentives are reflected in valuations. These valuations snowball the negative impact to homebuyers and the real estate market by inflating countless other subsequent valuations that become “cross-contaminated”.

Does anyone have a status update, it was rumored that the House was suppose to add 6694 to the Continuing Resolution that was passed earlier today???

I cant find anything on it, I would be interested to know as well.

I would like to know also. I can't find anything on it yet.

This report puts alot of negative comments about the cost of DPA to rest. See for yourself the reality of why the program needs to be saved!

http://www.cbo.gov/search/sitesearch.cfm?criteria=H.R.6694

I will not be able to purchase a home unless DPA is around and I have 780 credit score and work for the government. I have a young family and just can't save enough for a down payment. If DPA exists again, I can contribute to the economy and purchase a home. The agents and lenders need to be monitored, I agree, but don't cut the legs off potential buyers.

I do approx 700 forclosures per week for a county in Southern Calif. The main reasons for the loss of home these days is people living beyond their means and the the loop holes that allowed these very people to purchase 2X the house that they could afford. There needs to be a system that monitors and limits immediate gratification of the buyer, seller and agents involved. It is greed, and abuse of such programs that we must be paying for now. We could use some limits, but dont poison the well all together!

It seems there are TWO sides to this arguement as I have read posts about H.R. 6694 all across the internet. I understand why people are for it, and I understand why people are against it. Personally, I am FOR it because I am ready to purchase a home right now, and you guessed it, the down-payment is stopping me from doing so. If the DPA program were still in place, I would be house shopping right now FOR A HOUSE I COULD AFFORD. And therein lies the problem! I agree that there are STUPID people out there that used the DPA program to their advantage to buy a house out of their budget. Yes, because of DPA they were able to make this bad decision, but ultimately, the people who MADE this mad decision are to blame, not DPA. Lets not forget the people who have responsibly used DPA to purchase their first home, and who have kept up on their mortgage payments at all times! They are rewarded in the end by not having their house foreclosed on, and for making a responsible decision to purchase a house within their financial limits. Lets get H.R. 6694 passed!

With the bail-out approved and many bank-owned properties on the market what do you think is going to happen? If I were to speculate the banks will hold onto their properties and wait for the government to buy them at there current listing price. Providing DPA for firstimers with credit score and DTI qualifiers is a better way to move these properties off the market instead of unloading them onto the taxpayers. Pass H.R. 6694.

Like many others tracking this bill I to am wanting to purchase a home with DPA. If there is any lending, mortgage or political professionals out there reading these posts with any insight on when this might happen or the specifcs I know you comment would be greatly appreciated.

It was added to the union calender...what does that mean and for what date was it added?

I noticed the same thing about it being added to the union calendar. I have tried to google union calendar but have not found anything useful. Someone's got to know something. What is this union calendar about?

ok a friend of mine says this:

The "Union Calendar" is a calendar in the U.S. House of Representatives that's used to schedule bills for consideration that directly or indirectly involve money.

Here you should be able to search the calendars for the bill if you know the name, or you get get current and past calendars of the type 'Union Calendar': http://www.gpoaccess.gov/calendars/house/index.html

However I have gone there and done several searches but havent found anything related to this bill, anyone else try?

Looks like congress is adjourned until Jan 3. 2009

http://clerk.house.gov/floorsummary/floor.html?day=20081003&today=20081023

When are we going to get some ACTION on this bill??? Haven't we seen enough deterioration of our housing industry which is putting a severe drag on the rest of the economy and other sectors thereof? Congress is going to see that they made a grave mistake by eliminating DPA with that worthless piece of legislation known as The Housing Rovery Act...what an oxymoron and a waste of taxpayers money!

When are we going to get some ACTION on this bill??? Haven't we seen enough deterioration of our housing industry which is putting a severe drag on the rest of the economy and other sectors thereof? Congress is going to see that they made a grave mistake by eliminating DPA with that worthless piece of legislation known as The Housing Recovery Act...what an oxymoron and a waste of taxpayers money!

According to the latest blog, it's moving to the house floor and expected to be voted on this week, and is expected to pass! Great news.

question....if the house is out until Jan how will they vote on it?

question....if the house is out until Jan how will they vote on it?

This bill never became law. This bill was proposed in a previous session of Congress. Sessions of Congress last two years, and at the end of each session all proposed bills and resolutions that haven't passed are cleared from the books. Members often reintroduce bills that did not come up for debate under a new number in the next session.

So is HR 6694 dead? Is it too controversial given the massive stimulus packages rolling out?

Seller Funded Down Payment Assistance, if handled properly, is a good thing for the housing industry.