Seller-funded Downpayment Assistance and New Housing Bill

The National Association of Realtors® reports that contrary to many reports, the Housing bill signed by the President on July 30, 2008, does NOT eliminate all downpayment assistance programs from eligibility for FHA insurance. Only those programs that are funded directly from the seller or other party to the transaction are prohibited. Downpayment assistance from family members, government programs, or charities that are not seller-funded is still permitted. The prohibition goes into effect October 1, 2008.

Click here to get the main points about the Seller-funded Downpayment Assistance Provision.

Click here to get a summary and history of the issue.