CONGRESS MOVES CLOSER TO BAN ZERO-DOWN PAYMENT PROGRAMS

Steve,

Thanks for the post. All too often, the knee jerk reaction causes the pendulum to swing completely the other way, an all or nothing approach. Clearly there is potential for abuses with every loan product. Does that me loans should be eliminated, no. However, better safeguards would make for a better product, allowing those who really need it, the opportunity to use it.

I hear ya Yvette.... not to god for 1 st time buyers

Federal Government should regulate the banking industry....that would be a start

this is going to wreck the real estate sales in many states

Steve,  Very scary stuff!  The last 4 buyers that I have worked with have used down payment assistance programs to get their first homes.  For these buyers, at this point with our uncertain economy, this is the only way they would have been able to get into their new homes.

I hear ya sandy...this could adversely affect the housing market substantially

Steve - that just made my stomach turn. I live and work in a very rural area and many folks utilitze DPA with no problem at all. Talk about knee-jerk. This could really be devistating.

STEVE - Just another case of throwing the baby out with the bathwater.  How about making sure that people are qualified for the product that are applying for.  This is like when the Jumbo rates jumped overnight because they were non-conforming loans.  Nevermind the fact that many of these borrowers were infinitely more qualified for their loans than the people that fit into a "conforming" loan.

being the optimist I am  Adam, I am waiting to see if there will be new programs out from freddie mac or fannie mae that will help this situation.