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It may soon become a lot tougher for many people to become homeowners.
A financing option used by about 20% of people buying new homes.
It's going away on October the -- are exactly -- is going away.
That's ask David let them all mortgage.
Solutions dot com David explain it to me that is that there is something special it's going away for some potential new homebuyers what is it.
Good morning or good afternoon Stewart yes it's a down payment assistance program.
It's a program that builders has been a loophole in the Hud program -- -- builders are able to contribute.
Into a fund a nonprofit fund and they do for a fee and then they're able to take this money this dead.
Funds like Nittany Mahinmi in the front -- they then are able to give that money through this nonprofit to the borrowers as a down payment.
What's interesting is that it has represented the down payment assistance programs -- of represented about 20%.
Of the new home sales so builders are going to be impacted by this.
Wait a second David does that mean a -- but if I'm a new home -- And I go for this special deal.
Do I get money given to me that I can put toward my down payment or is it loaned it to me which I have to -- -- which is it.
Well there is there's there's there's several programs don't want -- if we talk about the broad term -- down payment -- programs are some programs where it is a gift.
And there's some programs -- -- three payment.
The good news about this is the programs that are that are -- in the communities where there's a -- Muni bond programs those are not going away.
Because what do what they're addressing with this -- law that has been passed doing away as I've told her first the down payment assistance to the builders.
Is it -- sell -- providing down payment get on it a home.
But the bottom line is that a new home build up.
House until October the for -- to offer me a direct incentive.
Maybe just give me some cash to get me into that new hope and that option is being used by up to 20% of new homebuyers and it goes away on October the fullest.
I got it right.
That is that is correct stir in the reasons going away it's a new statistics have come out -- saying that.
-- how kids.
Or FHA is delinquencies.
Are coming from within this down payment system program so there's good reason empirical data why this has to go -- it.
It falls into the into the category of everything's tightening up everything all over the place where -- you're talking credit it is tightening up.
David -- and thanks very much for joining us thank you so appreciative.
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