You may have heard that the Federal Government has passed law to dismiss first time homebuyer loans such as the Nehimiah and other such downpayment assistance programs. This is a big blow to many first time homebuyers as these programs allowed them to get into a home without having a high down payment.
Our thoughts on this is that, well, we are in America and have a free trade economy - someone is going to come up with a NEW product, even a better one, to fill this need. And that's exactly what is happening. We've heard from two lenders who are offering programs - here is one of them from Bank of America: Download KCDreamProgram0001.pdf - they call it their KC DReam Program. They also offer the ACORN program, but it is now a 3% down, which is still a good plan.
In addition, FIrstTrust Mortgage is offering a 103% loan product.
We anticipate other lenders will be re-configuring their first time homebuyer products. We will keep you posted on what we learn.
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