Downpayment program, targeted for elimination, sees 208% increase in
August
GAITHERSBURG, Md., Oct. 16 /PRNewswire-USNewswire/ -- The surge in U.S
home sales in August coincided with a 208% increase in the number of
homebuyers using AmeriDream's downpayment assistance (DPA) program to
achieve homeownership. The dramatic increase in DPA use occurred as
homebuyers sought to take advantage of the program before it was eliminated
by federal law effective October 1st. Overall U.S. home sales in August
increased 8.8% from a year earlier, according to the National Association
of Realtors.
"U.S. home sales increased in August -- and will likely increase in
September -- in large part because homebuyers sought to benefit from our
downpayment assistance program before it expired," said Ann Ashburn,
President of AmeriDream. "Sadly, what goes up will likely come down. Future
home sales will likely suffer in part because the Bush Administration and
HUD convinced Congress to eliminate DPA programs that had helped more than
one million FHA-mortgage qualified individuals become homeowners since
2000."
"The American homebuyer sent Washington a message in August:
downpayment assistance programs work, and are a vital component to
stabilizing the housing market. Congress must pass H.R. 6694, a bipartisan
plan to reauthorize and reform DPA programs. These buyers have a positive
ripple effect across the economy, generating new revenue for construction
companies, retailers, home goods stores, and revenue-strapped local
governments."
H.R. 6694, sponsored by Congressman Al Green (TX-9), would reinstate
FHA seller downpayment assistance for persons with certain credit scores.
Under the reforms in H.R. 6694, the allowance of downpayment assistance
programs will make the government money and not use any taxpayer dollars,
according to the Congressional Budget Office. H.R. 6694 is co-sponsored by
25 members of Congress from both sides of the aisle and was passed by voice
vote in September by the House Committee on Financial Services. To see the
full list of supporters for H.R. 6694, visit
http://www.supporthomeownership.com.
BACKGROUND: AmeriDream, a 501(c)(3) charity, was established in 1999 to
provide housing-related programs to low and moderate income individuals and
families. AmeriDream helps low and moderate income individuals and
families, a disproportionate number of whom are first-time homebuyers,
minorities, legal immigrants, women-headed households, and single-parents,
achieve homeownership. AmeriDream provides a wide range of programs,
including homebuyer education, loss mitigation counseling, community
development, and privately-funded down payment assistance. These programs
are provided at no cost to the taxpayer. AmeriDream not only seeks to help
families purchase homes, but also provide them with the education and other
resources needed to be responsible homeowners.
SOURCE AmeriDream
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Related links:
http://www.ameridream.org
http://www.supporthomeownership.com/
CONTACT:
Henry Fawell of AmeriDream, +1-410-545-5830
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