Will the American Dream Downpayment Initiative?
Lending answer: If you mean the American Dream Down Payment Initiative offered through the Federal Dept. of Housing and Urban Development… this program will continue after October 1st. The ONLY down payment assistance grants that are eliminated are those that take money from the seller to give to the borrower. The better known companies offfering this “service” are Ameridream, Nehemiah, and H.A.R.T. FHA hasn’t changed their guidelines that allow proper grants – from a government agency (like HUD) or a non-profit charity (like Catholic Charities of America). These funds don’t come from the seller, so there is no conflict of interest or problems with FHA.
