Is the government doing away with all downpayment assistance programs for first time homebuyers?
They are doing away with the types of programs where the seller gives the money to a non-profit organization and the organization gives the money to the buyer. These are most commonly Nehemiah, Genesis and American Dream. But there are other local government programs that are not affected — these are often low- or no-interest loans or even grants based on income or job status (teachers, policemen, government workers, etc.). Also, gift money is not affected. Wells Fargo I understand has set September 8th as the deadline for accepting loan applications for Nehemiah, Genesis, etc., and the loans MUST close on or before September 30th because the programs cease completely as of October 1st. These programs existed for the purpose of helping buyers who were short on down payment money to be able to buy a home. The down payment or a part of it came from the seller. There is apparently some evidence that buyers who bought with the aid of such programs have had a higher-than-normal foreclosure
