The End of Down-Payment Assistance?
May 29, 2006 |
The IRS recently handed down a ruling that effects the non-profits out there that supply down-payment assistance to people who are using FHA loans to buy homes. The ruling could mean an end to these organizations. BankRate put out a very good two-page article on the ruling and the impact it could have.
If the ruling really does affect these organizations, there could be a significant drop in the number of FHA loans that get issued. Although, I happen to agree with the assertion that these down-payment assistance programs can sometimes have a negative effect in that they allow people who maybe shouldn’t be buying a home to get a loan. In the long run, a ruling like this may be good for the industry in that it will force people to save for a loan. Saving is something that Americans could definitely do more of.
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Disclaimer
My name is Daniel Rothamel. I am a licensed real estate agent in the Commonwealth of Virginia and a member of the National Association of REALTORS. As such, I adhere to a strict code of ethics and all laws with regard to equal housing, which is reflected in the content of this blog. My broker is Strong Team REALTORS, 86 Joshua Lane, Palmyra, VA 22963; (434) 589-5800. My VA Real Estate License number is 0225 077325. All of the opinions in this blog are mine, unless otherwise noted.
