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As many of you have heard, the Legislature and President have now signed into law the INABILITY to do ZERO DOWN FHA LOANS as part of their RECOVERY PACKAGE.

Obviously, this does not appear to help in the RECOVERY of the Housing Market, as there will be fewer buyers to purchase the inventory-laden homes on the market.

However, the GOOD NEWS is that there is time to still purchase with ZERO DOWN FHA.  The window should be open for up to Sept, and possibly Oct, with loan submissions in by the end of Sept.

I already am working on a solution for buyers after this date to be able to purchase 0 DOWN, using FHA's quality loan program.  If you are interested in any information regarding the above topic, with which I'm familiar, please do not hesitate to ask.

Blessings and God's best to you and this country as we navigate through the interesting new laws and watch the results of our Congressmen and Congresswomen.

Andrew Schmidt Nations Home Funding, Inc. BK0905991

ACSchmidt4@aol.com  602-371-8600

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August 2, 2008 by Pat (not verified)

The elimination of a loan guarantee to a person/family that has no downpayment will obviously help in the RECOVERY of the market! While I understand most Mortgage Brokers do not like the fact that the same entity that is paying for their time at the trough is actually requiring a minimum commitment by borrowers (which may actually hurt their profit margin) I doubt that taxpayers agree. Perhaps we could demand that conventional loans come with less stringent guidelines and no Downpayment? Hmmm...

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August 7, 2008 by Andrew Schmidt (not verified)

Thanks for your opinion. FHA has allowed for 2 other methods besides the soon-to-be-extinct DPA down payment assistance, for buyers to not have to come up with their own down payment. So it's not my profession I'm concerned with.  However, with rising gas and food prices, I am concerned that without the easiest form of no-down purchase programs, that many strong credit buyers will feel they have to wait for 1-2 years to save up the $5-10,000 to purchase. That wait, with the current rising home inventory, and the need to reduce the inventory to shore up all of our US property values, is in my opinion, not healthy for the national and local real estate markets.

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