Push for Downpayment Assistance Continues

According to ""AmeriDream"":http://www.ameridream.org, a non-profit organization based in Maryland that provides housing-related programs to low and moderate income Americans, ""last week's report"":http://dsnews.comindex.php/home/news_story/2612 from the National Association of Realtors (NAR) showing yet another decline in January home sales is strong evidence that Congress must provide ""proven incentives like downpayment assistance (DPA)"" in order to stabilize the housing market.
""Rep. Al Green"":http://www.house.gov/algreen/ (D-Texas) has introduced H.R. 600, a bill that would reinstate non-profit DPA as an allowable gift source for creditworthy borrowers of Federal Housing Administration (FHA) loans. The bill is still making its way through Congress, and according to Green, the U.S. Government Accountability Office (GAO) reports that seller downpayment assistance loans have a 94 percent success rate after three years.
A broad coalition of organizations support DPA, including AmeriDream, the National Association of Homebuilders, the U.S. Conference of Mayors, the Congressional Black Caucus, the Congressional Hispanic Caucus, and the Labor Council for Latin American Advancement. DPA has also been strongly advocated by congressional leaders, including Financial Services Chairman Barney Frank (D-Massachusetts) and Housing Subcommittee Chairwoman Maxine Waters (D-California).
Downpayment assistance programs funded in part by sellers expired under federal law in October 2008, despite having helped one million families and individuals achieve homeownership. According to AmeriDream, eliminating these DPA programs effectively removed 300,000 FHA-qualified homebuyers from the housing market annually, at a time when the economy can least afford it.
Ann Ashburn, president of AmeriDream, Inc., commented, ""Big decisions lay ahead for Congress and the Obama Administration. Our leaders have an historic opportunity to stabilize our housing market by supporting H.R. 600, bipartisan legislation that will reauthorize DPA for credit-ready homebuyers.""
According to Ashburn, H.R. 600 will help prevent the downward spiral in home sales and home values that are devastating neighborhoods and will provide a much needed incentive for the next generation of American homeowners to step off the sidelines and into the market for a home.
Congressman Green said, ""Seller downpayment assistance helps hardworking Americans achieve the dream of homeownership with no cost to taxpayers. I strongly believe that we can mend the seller downpayment assistance program rather than end the program.""