Down Payment Assistance has been a big part of FHA Mortgage Loans for the last 10+ years for First Time Home Buyers. In October 2008 Congress eliminated the Down Payment Assistance Program eligibility for FHA Home Buyers.

Good News for First Time Home Buyers!

Rep. Al Green of AL will be introducing HR-600 on 1-21-09 to save and reform Down Payment Assistance for FHA Mortgage Loan eligibility.

Without using any government funds, Down Payment Assistance has helped more than 1,000,000 families buy a home with an FHA Mortgage Loan. These fundings have had a net impact of $24 Billion in spending and economic growth.

Down Payment Assistance needs your help. Go to supporthomeownership.org and tell your Congressman to support HR-600.

The federally insured mortgage program provided by HUD normally referred to as FHA has been around for a long time. When I first got into the mortgage business FHA was by and far the number one mortgage program. At the time there were no stated income programs, no option ARM programs, there was no 100% financing, it was a very vanilla time. Conventional mortgages, those offered through FannieMae and FreddieMac just were not big, they were used primarily for move up buyers who had at least 20 percent to put down on a home.

Then around 2002 FHA disappeared off the face of the mortgage world, FHA went from representing nearly 60% of all mortgage origination to 3%, nearly nothing.
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