FHA Mortgage Guide

This being the Internet Era, the Nehemiah Corporation of America has created a new web site to get downpayment assistance programs (DPAs) re-instated for FHA mortgage borrowers.

The programs were eliminated under the FHA mortgage reform package passed earlier in the month.

While HUD has long-sought the elimination of the programs on the grounds that they resulted in disproportionate foreclosure levels. Scott Syphax, the president and CEO of Nehemiah Corporation of America, says that HUD’s “own inspector general cited as unreliable. In short, FHA undercounts the number of DPA loans by up to three times and divides that number into the number of claims it pays.”

On October 1st, say Nehemiah at dpagroundswell.org, downpayment assistance will be eliminated.

“As a result, 50,000 hard-working, credit-worthy families will be denied the American dream of homeownership in that month alone. The loss would further injure an ailing economy and fatally injure an already crippled housing market—a housing market in which 40% of all current Federal Housing Authority (FHA) loans depend on DPA.

“A new law, H.R. 6694, has been proposed to fix the error and save DPA. To pass it, we need a groundswell of public support.”

The FHA reform bill included a number of bits and pieces needed to cobble together strong support on Capitol Hill in the face of the President’s threat to veto the measure. Supporters of the bill got their strong majority — but also wound up with a bill which included several provisions which would have been unlikely to pass individually.

Traditionally DPA programs have had broad support on Capitol Hill, reason enough to believe that the legislation could pass — and then face a presidential veto.

Check out these FHA resources for more information

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