Down payment assistance programs, lovingly called DAP’s by we in the real estate industry, were nixed as of Oct 2008. Between asking sellers to pay for closing costs and then having the seller’s “gift” them down payment monies, many home buyers were getting into FHA home loans for nothing out of their pocket.
The backlash was huge. “We need to make sure home buyers have some skin in the game people said. ” No more down payment help. Zilch.
Now, if you are a Salem Oregon home buyer doing an FHA loan, you can use the tax credit as the down payment for the house. Announced today, FHA will do a “bridge loan” of sorts so that home buyers can take their tax credit at closing instead. So, if you are a home buyer planning to do an FHA loan, you can now use that money as part of your 3.5% down payment.
I will post more as details emerge for the Salem Oregon area.