Last week the US Department of Housing and Urban Development called for all agencies that provide DPAs (downpayment assistance programs) to buyers with FHA financing to halt funding of new funds while they submit additional documentation and clarification about their organization.
Okay...so why are you telling me this?
Well, if you or a client of yours are wanting to apply for Downpayment Assistance with their FHA loan, most, if not all of those DPA groups may be paused for FHA buyers, nationally.
Is this just a Community Mortgage situation?
No, unfortunately all lenders are having to adapt to this.
Can I still get an FHA loan if I don't apply for Downpayment Assistance?
My client already have an FHA case number as of April 17th.
You, my friend, are good to go! If you have a client that received a case number after 4/17, you may be on pause.
What do we if we are after April 17th?
You have a few options:
1. See if you can switch to a Conventional, USDA, or VA loan. DPAs are still able to be combined with these loans.
2. Try an FHA loan with a gift fund. --> Click here for gift guidelines
3. Contact the agency to get a timeline. Some of these agencies are all over the issues. Some may only be pause for a short time, some longer.
4. Contact your favorite CMC Loan Officer for additional solutions tailored to your specific situation.