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Whaddya Mean Your Daddy Ain’t Rich?

by Peter G. Miller
August 4th, 2008

April writes about downpayment assistance plans (DPAs) with FHA loans and their exclusion under the FHA reform bill and says:

“I am a tax payer and I am not happy. I will not save tens of billions of dollars. If anything that’s tens of billions of dollars that the government will find something else to use it for. Its not like they are going to lower taxes now that this program no longer exists.

“I am in the process of trying to purchase a house and do not have rich parents. I think people are forgetting the purpose of the program, which is to help those that need help with a downpayment to purchase a house.

“Instead of doing away with the program, how about you do something about the problem? If you know people are taking advantage of it, why not go after them. Make an example out of them.

“I am not going to pretend like I know what the solution is but I know that taking away the program is only going to hurt the ones it was meant to help.”

The apparent theory behind the HUD effort to ban DPAs is that each of us should have chosen better parents, or at least parents with more dollars.

Now they tell us.

The fact that an individual has parents who can provide downpayment money does not mean such buyers are more financially responsible then someone who is aided with DAP financing. It only means that in the great lottery of life those with parents who can provide support landed on a good spot at birth.

I guess when HUD talks about “family values” what they really mean is net worth….

The HUD campaign against DPAs conflicts with their willingness to allow as much as a 6 percent “seller contribution” from owners to move a sale. Does anyone deny that at least some owners try to jack-up sale prices to cover the cost of the seller contribution?

Look for Congress to reconsider the DPA issue. Unfortunately, by the time changes are made, if they are made, a lot of people will have lost the opportunity to buy a home.

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This entry was posted on Monday, August 4th, 2008 at 3:52 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

One Response to “Whaddya Mean Your Daddy Ain’t Rich?”

  1. Myrtle Beach Rentals Says:

    its going to be intresting to see what replaces downpayment assistance -

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