matty2tan

Is the FHA Effectively Condoning Mortgage Fraud?

Jane, I agree wholeheartedly with your comments about renting being a viable option instead of buying, and the effects of bad loans, however, Michael led off his article with a statement that makes it seem like D.R.Horton is the only one "getting around the system" (his words, and not exactly neutral) And yes, if you're making a point about who uses the DP assistance program, it's does matter that you disclose all the participants, like private sellers, and builders, and even public agencies. Highlighing one company out of the dozens, maybe hundreds of entities using DP assistance is not exactly fair. If builders are the largest users of this program, why not say that? Also, a gift DP is always a gift, and never has to be paid back, even if it is rolled into the price-no getting around that. Banning DP assistance would mean the family "gift" rules go out too, because that "no-repay gift" rule is exactly what allows family members, friends, and yes, 3rd party DP assistance providers to provide that gift. Does anyone remember what the original purpose of Nehemiah ( one of the original down payment assistance providers) was-or what it means? Perhaps the rule needs to be amended to eliminate 3rd party gifts? Or, to be on point about using money efficiently, how about bringing back 4-5 month reserves, if you use DP assistance?