Poughkeepsie Journal (NY) (08/18/08)
Housing industry observers expect that prospective buyers will scramble to take advantage of seller-funded down-payment assistance before a federal ban on such programs takes effect on Oct. 1. The federal housing bill signed into law in July sews up a loophole that allows nonprofit organizations to gift mortgage down payments, and industry experts believe markets that have relied heavily on the programs could see new-home sales cut by as much as half. Seller-funded down-payment assistance has served as a surrogate for subprime loans in some ways and has helped builders put first-time and low-income buyers into new homes. "We will eventually go back to the mind-set of a society where you have to have 3 percent up front to buy a home," says Phoenix real estate analyst Jim Belfiore.
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