DPA - Downpayment Assistance Program

DPAGroundSwell2 was launched today to coincide with the introduction of H.R. 600, FHA Seller-Financed Downpayment Reform Act of 2009, by Representative Al Green (D-TX). H.R. 600 is the 2009 version of last year's bill (H.R. 6694) that would restore seller-funded downpayment assistance (DPA).

Reformed DPA will help stimulate the housing market by providing working-class Americans with a path to homeownership and generate $150 billion in home sales this year. Purchasing a home now puts homebuyers in a position to build equity as markets recover.

CONGRESS INTRODUCES BILL THAT WOULD REINSTATE DOWNPAYMENT ASSISTANCE: NEHEMIAH RESPONDS

- Bill Would Broaden Opportunities for Sustainable Homeownership Without Government or Taxpayer Dollars -

Sacramento, CA, January 16, 2009 -- The following statement was issued today by Scott Syphax, president and CEO of the Nehemiah Corporation of America in response to H.R. 600, a bill introduced in Congress that would reinstate seller-funded downpayment assistance (DPA). Prior to the October 1, 2008 ban on DPA, Nehemiah was the oldest and largest provider of downpayment assistance.

"There is an overlooked solution to today's housing crisis and fortunately several members of Congress recognize the role DPA plays in getting us there. We commend Congressman Al Green [and additional members of Congress] for working tirelessly to support a bill (H.R. 600) that creates opportunities for sustainable homeownership, which serves as the cornerstone to strengthening a crumbling housing market and breathing life back into the economy. With foreclosures on the rise and banks maintaining their stranglehold on credit, DPA offers a simple solution without spending a single government or taxpayer dime according to the Congressional Budget Office. Further, it enables worthy families to take advantage of depressed home prices, therefore reducing the glut of homes on the market. We urge Congress to reach across the aisle and prioritize broadening opportunities for responsible homeownership in America by reinstating DPA."

http://www.nehemiahcorp.org/
Copyright © 2008 Nehemiah Corporation of America. All Rights Reserved

Broker of Texas Sold Team Realty, Cindy Stewart, talks about DPS:

This program alone will really kick off the market!

By losing the DPA it is likely to be one of the biggest reason that people are not buying. They don't have enough cash to make the down payment.
I would say that 99.9 percent of our clients that used this help are still in their homes.

1- Because they had a good job and credit, just not cash. If we lend smart we will keep our people in homes and buying homes.

2- This will help investors the most.

3- This will bring back the under 200K buyers by the droves.