Ameristar Mortgage Blog

No Money Down FHA Loans Going Away in Chicago: Get One Before October 1st, 2008

The mortgage and financial news has come quick and fast. I just wanted to take a moment and help you fully understand what appears to be happening.

The House has approved the Foreclosure Bill and the President has signed it into law. Effective after October 1st, 2008 there will be no more no down payment FHA loans in Chicago and No Down Payment Assistance offered any more. We will have under 60 days before this happens.

***So if you are considering owning a home at this point with No Money Down or Assistance, please contact me so that we can get the ball rolling and get you a no money down FHA mortgage in Chicago before they go away.******

It’s hard to believe they will take Down Payment Assistance away without replacing it with something else. That will eliminate a huge segment of our population that suddenly cannot qualify for a Chicago home mortgage.

The DPA element in the Bill is as follows:

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

481
(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.”

Ameristar Mortgage is your Chicago FHA mortgage broker: