Buyers have moved to the sidelines since FHA's 0 down DPA, or seller assisted Down Payment Assistance for net zero down financing was eliminated by the HERA (Housing and Economic Recovery Act) last month.

Some buyers are not aware that the 3% down FHA down payment can come from:

a) Car loans

b) Family loans

c) 401k loans

d) Sale of personal property with bill of sale

e) Other creative sources, including a combination of sources

As a bonus from HERA, the 3% down payment can be repaid by the IRS at tax time in early 2009, with the $7,500 tax credit. 

This stimulus has worked well for the plans for those purchasing in late 2008.  It remains to be seen whether the IRS will be refunding the $7,500 tax credit for those who purchase in early 2009, before the tax deadline of April 15th, approximately.  Kind of like the IRA contribution deadline for each tax year.

For those who are, Happy House Hunting.

Andrew Schmidt, Nations Home Funding BK0905991