Buh-Bye, DPA's

[SoCal78_IHB]

Just a reminder - It's been 8 days now that Section 2113 of the Housing and Economic Recovery Act of 2008 went into effect... which prohibits seller-funded down-payment-assistance programs (such as Nehemiah Program, AmeriDream, etc.) It will be very interesting to see the changes this may bring to our local housing markets. One more nail in the coffin.

 

[IrvineRenter_IHB]

Just a reminder - It's been 8 days now that Section 2113 of the Housing and Economic Recovery Act of 2008 went into effect... which prohibits seller-funded down-payment-assistance programs (such as Nehemiah Program, AmeriDream, etc.) It will be very interesting to see the changes this may bring to our local housing markets. One more nail in the coffin.

I know the homebuilders are not too happy about this provision. 60% or more of their sales recently in Riverside county have come from these programs. For a time, people were willing to overpay for new homes because it was the only way you could get a house without a downpayment. The last quarter of 2008 and the first of 2009 will not look good for homebuilders.