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Update on FHA Down-Payment Assistance CONGRESS IS SET TO LIMIT DOWN-PAYMENT ASSISTANCE

It appears the House will accept the Senate language on seller funded down-payment assistance programs. In an article in today’s Washington Post, Chairman Barney Frank of the House Financial Services Committee is quoted as saying the House will yield to the Senate on the termination of seller participation in down-payment assistance programs.

A link to the entire article is below. Senate language on seller funded down-payment assistance programs The Senate language states: (in most recent public version) “(C) Prohibited Sources In no case shall the funds required by subparagraph (A) consist, in whole or in part, of funds provided by any of the following parties before, during or after closing of the property sale: (i) The seller or any other person or entity that financially benefits from the transaction.” (ii) Any third party or entity that is reimbursed, directly or indirectly, by any of the parties described in clause (i)." CONCLUSION An implementation date has not been determined yet. It appears there could be a relatively short implementation time frame and it could go into effect this week. We will keep you updated as more information becomes available. Shortcuts / Links Washington Post Article: http://www.washingtonpost.com/wp-dyn/content/article/2008/07/21/AR2008072102456.html