Seller-Funded Downpayments Going Away Soon

The clock is ticking on all seller-funded downpayments.  Effective with all FHA loans underwritten on or before

Clock is ticking!!

October 1, 2008 seller-funded downpayments are prohibited.  All loans containing a seller-funded DPA must close by October 31, 2008 and/or be purchased by Taylor, Bean & Whitaker Mortgage Corp. by November 15, 2008.

This all came about because the Bush administration felt the practice of seller-funded “gift” artificially inflate the price of a home and triples the likelihood a loan will default.  The seller-funded “gifts” from nonprofits are primarily funded by home builders.  Buyers are still allowed to used gifts from family members, employers or charities to pay the FHA down payment.

First-time homebuyers need to act quickly in order to take advantage of both the seller-funded DPA and $7500 tax credit that was recently signed by President Bush.

Looking for a new home?  Go to www.buytampafl.com for a list of all available homes in the Tampa/St. Petersburg area.

Tags: buyers, FHA, home loans, Tampa Real Estate