matty2tan

Is the FHA Effectively Condoning Mortgage Fraud?

First of all, why highlight D.R Horton? The down payment assistance you are talking about can be, and is, used by everybody in the business, private sellers included! The FHA is not allowing sellers to "circumvent" the down payment requirement-they are merely allowing gift funds (with no repayment requirement) to be used for the DP. This allows parents, for example, to assist in their childrens home purchase by "gifting" funds". It also allows other parties to contribute to the DP, provided the no repayment requirement is met. And who says that all these buyers can't come up with a down payment? Quite a few have money in the bank, giving them an extra cushion instead of draining the account for a down payment. Why wouldn't you take advantage of a seller paid down payment if you could, especially at todays low rates. Wouldn't you rather pay a tax deductible $30-35 extra a month to keep your $6000-7000 nest egg in the bank in these uncertain economic times?