http://www.fhaloanpros.com/2010/01/should-we-bring-back-fha-seller-financed-downpayments/ The Unofficial Guide to FHA Loans & Mortgages Tue, 17 May 2011 20:16:59 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://www.fhaloanpros.com/2010/01/should-we-bring-back-fha-seller-financed-downpayments/#comment-79579 s2kreno Fri, 29 Jan 2010 17:16:32 +0000 http://www.fhaloanpros.com/?p=1750#comment-79579 Seller-paid DPAs should not back in my opinion. Homes purchased with seller-funded DPAs sold for 2-3% more than comparable houses, making them more likely to be underwater and more likely for borrowers to end up in default. Not everyone is suited for home ownership; if you don't have the discipline or wherewithal to come up with two or three percent for a down payment, your situation is too precarious and taxpayer's money should not be risked. A better solution is to require counseling, budgeting education, and set up accounts for disadvantaged people where they have to save their down payment plus two month's reserves and every dollar they put in can be matched by a community organization. That way only those willing to work for it get help with home ownership, and they'd be better equipped to deal with the responsibility. Seller-paid DPAs should not back in my opinion. Homes purchased with seller-funded DPAs sold for 2-3% more than comparable houses, making them more likely to be underwater and more likely for borrowers to end up in default. Not everyone is suited for home ownership; if you don’t have the discipline or wherewithal to come up with two or three percent for a down payment, your situation is too precarious and taxpayer’s money should not be risked. A better solution is to require counseling, budgeting education, and set up accounts for disadvantaged people where they have to save their down payment plus two month’s reserves and every dollar they put in can be matched by a community organization. That way only those willing to work for it get help with home ownership, and they’d be better equipped to deal with the responsibility.

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