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Illinois and Wisconsin FHA Down Payment Assistance Going Away!

The mortgage and financial news this week has come quick and fast. We just wanted to take a moment and help you fully understand what is happening.

The House has approved the Foreclosure Bill and the President has already signed it! The understanding is that after October 1st, 2008 there will be no Down Payment Assistance offered any more. We will have 60+ days before this happens.

So if you are considering owning a home at this point with Down Payment Assistance, please contact us now so that we can prequalify you now for a no money down FHA mortgage before they disappear.

It's amazing that they would take Down Payment Assistance away without replacing it with something else. This will eliminate a huge segment of our population that suddenly cannot qualify for a home mortgage.

You can still get your down payment from other sources for a no money down FHA mortgage:

An outright gift of the cash investment is acceptable if the donor is the borrower’s relative, the borrower's employer or labor union, a charitable organization, a governmental agency or public entity that has a program to provide homeownership assistance to low- and moderate-income families or first-time homebuyers, or a close friend with a clearly defined and documented interest in the borrower.  The gift donor may not be a person or entity with an interest in the sale of the property, such as the seller, real estate agent or broker, builder, or any entity associated with them.

The Down Payment Assistance (DPA) portion of the Bill is as follows:

"SEC. 2113. Cash Investment Requirement and Prohibition of Seller-Funded Down Payment

(C ) Prohibited Sources

In no case shall the funds required consist, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale: (i)The seller or any other person or entity that financially benefits from the transaction. Any third party or entity that is reimbursed, directly or indirectly, by any of the parties described in clause (i).

This paragraph shall apply only to mortgages for which the mortgagee has issued credit approval for the borrower on or after October 1, 2008."

Contact Ameristar Mortgage today to get a no money down FHA mortgage before they are gone!

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