{"id":195653,"date":"2008-06-24T18:00:00","date_gmt":"2008-06-24T23:00:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/06\/24\/fha-still-backing-zero-money-down-home-loans\/"},"modified":"2008-06-24T18:00:00","modified_gmt":"2008-06-24T23:00:00","slug":"fha-still-backing-zero-money-down-home-loans","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/06\/24\/fha-still-backing-zero-money-down-home-loans\/","title":{"rendered":"FHA Still Backing Zero Money Down Home Loans"},"content":{"rendered":"<p>It&#8217;s called the DAP, Down-payment Assistance Program, and it allows <a href=\"http:\/\/online.wsj.com\/article\/SB121426681678998589.html\">buyers to purchase a home with no down payment<\/a>, even though FHA regulations require 3% down.<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p>The offers &#8212; including &#8220;100% financing&#8221; &#8212; are made possible due to down-payment assistance programs run by nonprofit organizations. These programs are funded largely by home builders and also by private homeowners desperate to sell. The seller-funded groups provide enough down-payment money to buyers that they can qualify for a mortgage backed by the Federal Housing Administration, which requires at least a 3% down payment.<\/p><\/blockquote>\n<p>Basically, realtors and builders set up non-profits, and the home seller contributes to the non-profit to cover closing costs and down payments, which are made as grants to the buyers.<\/p>\n<p>Of course, that money from the seller gets tacked onto the selling price.  So if a condo were to sell for $100K, they would sell it for $110K, with 7K covering closing costs, and 3K covering the down payment required by the FHA.<\/p>\n<p>Net effect: the buyer has no skin in the game.<\/p>\n<p>They now account for 34% of downpayments on FHA loans.<\/p>\n<p>Thankfully, the current FHA overhaul in Congress eliminates this&#8230;<span style=\"font-weight: bold;\">for a while, at least<\/span>.<\/p>\n<p>In any case, how about letting the pictures do the talking:<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/pic60.picturetrail.com\/VOL1689\/10590113\/19633101\/322629423.jpg\" \/><br \/><img decoding=\"async\" src=\"http:\/\/pic60.picturetrail.com\/VOL1689\/10590113\/19633101\/322629507.jpg\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s called the DAP, Down-payment Assistance Program, and it allows buyers to purchase a home with no down payment, even though FHA regulations require 3% down. The offers &#8212; including &#8220;100% financing&#8221; &#8212; are made possible due to down-payment assistance programs run by nonprofit organizations. These programs are funded largely by home builders and also &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[998,970,1004,1020,1088],"tags":[],"class_list":["post-195653","post","type-post","status-publish","format-standard","hentry","category-congress","category-corruption","category-finance","category-legislation","category-real-estate"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195653"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=195653"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195653\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=195653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=195653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=195653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}