FHA down-payment assistance called a 'scam'
Letters to the Editor
By Inman News, Friday, March 7, 2008.Re: 'Judge throws out ban on down-payment assistance' (March 5)
Dear Editor:
It blows my mind how a scam like the FHA down-payment-assistance programs could be allowed to continue. All you have to do is look at the levels of default on these loans to know that those loans raise the cost of FHA loans for everyone else. It's a shame, but at this point FHA could easily and justifiably make changes now that will make the programs very hard to utilize.
During the good times when properties were appreciating it was not too hard to bump values a bit, and over the last number of years it was so easy to get any loan that for FHA to keep even the limited market share they had it was necessary for them to accept the down-payment-assistance programs.
Now that the country is attempting to get back to responsible lending practices we have another liberal judge telling the government they have a responsibility to continue to make bad lending practices. If FHA will just go ahead and introduce its own 100 percent LTV version, these so-called "nonprofit" mafia organizations would just go away.
D. Gray
Atlanta, Ga.
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Submitted by Molly Lionberger on March 8, 2008 - 3:31pm.
These DPA programs really helped families in Hurricane Katrina affected areas where people needed shelter, clothing and other necessities. If you think about the cost to replace everything for a typically family of 4, the costs are staggering. Now that we are 2.5 years past the storm of the century, I believe that people need to have a financial investment in a property. Too many people are walking away from their homes. If renters want to become homeowners, then they need to save money, pay their existing bills on time, work on their credit and have job stability.
- Molly Lionberger, Biloxi, MS