Seller Assisted Down Payments in Phoenix/Scottsdale - One Month and Counting
We recently wrote a pretty long piece about all the Home Financing Changes over the past year and what it will mean to you. 
Within that article, we also discussed the fact that Seller Assisted Down payments through programs like AmeriDream and Nehemiah are scheduled to go away effective October 1, 2008.
These programs have been a long fought battle for many years and just last October a ruling was overturned by the courts to allow these programs to continue, but with the new Housing Stimulus plan, a provision was enacted that would require the abolishment of these programs. And the reason...HUD has stated that borrowers on these loans are 3 times more likely to default and they were at a point that they could no longer support them (whether that's totally true is up for grabs...as Nehemiah and AmeriDream are saying otherwise).
So where does that leave first time homebuyers and builders of new homes...well it's anyone's guess right now. The offset in the new stimulus plan is the $7,500 tax credit (but again...it's a credit...a loan...not a grant) and you will have to pay it back (for more on that read the Home Financing Changes article link above). Several new home builders are matching the $7,500 credit in order to get their homes moving. Of course you'll need to use their mortgage company to take advantage of the incentive, but if it doesn't bother you not to use your own mortgage company, then it might be worth looking into.
For now...there is still time left to obtain one of these loans. Though many lenders have set deadlines as of the end of August (as they want to get these loans closed and sold off before October 1), there are others that are willing to go to the end of September (again...that's a CLOSED loan by the end of September)...not just starting the process.
So if you take advantage, there is still a possibility you could get into a new home for as little as $500 down (the down payment requirement for buyers according to AmeriDream...and if you can find a seller also willing to pay closing costs)...which is still quite possible. 
Just something to think about!
As always...thanks for "hanging out" with us.