CarolinaMortgageConnection.com

Down Payment Assistance for FHA sees Increased Fee

According to The Nehemiah Program, effective June 9, 2008, the fee for processing the down payment assistance program through Nehemiah will be increasing. Here is an excerpt from their press release:

Nehemiah has built its reputation through our relentless commitment to providing affordable homeownership solutions to the public. Unfortunately, current economic conditions have had a dramatic impact on our costs of operation. Additionally, we incurred significant costs associated with our recent regulatory victory and the expenses related to educating the public and governmental officials regarding the facts about downpayment assistance. While we strive to hold costs down and have held the line for a long time, it is now necessary for us to temporarily increase our processing fee.

Currently, the new list price of this fee is $599, up $100 from before.  However, as a preferred client, Residential Mortgage Center is able to get this fee at a discount, better enabling our clients to accomplish their goals! (including Charlotte first time home buyers!)

Down payment assistance for FHA mortgage loans is a key part of helping Americans realize the dream of home ownership, especially first time home buyers. Despite the recent demise of the subprime mortgage market, buying a home without a major down payment is still possible. Some critics say this is a bad idea, citing that this is what caused the mortgage and real estate crisis we are currently in. But I disagree as the real issues stem from a combination of investors speculating that values would just continue to increase at record pace with no end in sight and the offering of mortgage loans to individuals that should not have qualified in the first place. The amount of money down had no impact on a home buyer’s ability to make their mortgage payments.

With the continued use of Down Payment Assistance programs, many first time home buyers in Charlotte can actually take advantage of a soft market and stop renting. Getting the country’s real estate market back on track should be a priority and banning DPA programs would bring that recovery to a stand still.

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