There is a new law that is going to take effect and it is not going to help buyers. Many buyers have been sitting on the fence and waiting for various things to occer before making the move to purchase a home. With the new law going into effect on Ocotber first I encourage you not to wait. See below... If you need assistance in purchasing a property call me. I am here to help.
New Mortgage Law Has Buyers Scrambling
Housing industry observers expect that prospective buyers will scramble to take advantage of seller-funded down-payment assistance before a federal ban on such programs takes effect on Oct. 1.
The federal housing bill signed into law in July sews up a loophole that allows nonprofit organizations to gift mortgage down payments, and industry experts believe markets that have relied heavily on the programs could see new-home sales cut by as much as half.
Seller-funded downpayment assistance has served as a surrogate for subprime loans in some ways and has helped builders put first-time and low-income buyers into new homes.
"We will eventually go back to the mind-set of a society where you have to have 3 percent up-front to buy a home," says Phoenix real estate analyst Jim Belfiore.
Source: Poughkeepsie Journal (N.Y.) (08/18/08)
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