Frequently Asked Questions

Is DPA responsible for the foreclosure crisis in America?

Recent National Delinquency Studies (NDS) issued by the Mortgage Bankers Association demonstrate that FHA loans are not the source of the foreclosure crisis. more »

Will H.R. 600 reduce foreclosures associated with DPA homebuyers?

It is unknown what the foreclosure rates will be following the introduction of a reformed model of seller-financed downpayment assistance (SF-DPA). more »

How does H.R. 600 compare to the previous DPA bill (H.R. 6694)?

H.R. 600 is identical to the final version of H.R. 6694 as it relates to seller-financed DPA transactions and requires no changes to the previous CBO estimate. more »

What did the Government Accounting Office 2005 report on DPA conclude?

Claim rates for Seller Funded Down Payment Assistance are only 3% higher than non seller funded down payment assistance loans. more »

How will H.R. 600 reform DPA?

DPA is an enormously popular program because of lack of responsible loan choices for low-to-moderate income Americans. more »

What was the conclusion of the Alex Brill report in 2008?

A report by Alex Brill, CEO of Matrix Global Advisors and a Research Fellow at the American Enterprise Institute, evaluates the prior economic evidence used by the Federal Housing Administration (FHA) to eliminate seller funded downpayment assistance (SF DPA) and provides an new analysis using recent FHA data. more »

What does the Waste/Fountain report say about the impact of DPA on the economy?

According to an economic-impact study, commissioned by Nehemiah, by two well-respected California economists, Dr. Robert Waste and Dr. Robert Fountain, DPA program have created $38.6 billion in revenues, 235,000 jobs and added $4.6 billion in total tax revenues in the 12 months prior to DPA's end. more »

CBO Confirms: H.R. 600 Costs Taxpayers Nothing

Prior to the introduction of FHA Seller-Financed Downpayment Reform Act of 2009 (H.R. 600), the Congressional Budget Office (CBO) confirmed that H.R. 600, like last year's DPA bill (H.R. 6694), will not require U.S. government funding. more »

Don't homebuyers need to have some "skin in the game" in order to assure that they act responsibly and do not permit their mortgages to go into foreclosure?

By gifting the downpayment to the buyer, seller-financed downpayment assistance (SF-DPA) gives buyers equity stakes in their new homes in the amount of assistance provided. more »

Doesn't SF-DPA inherently lead to inflated house appraisals?

One of the principal criticisms of seller-financed downpayment assistance (SF-DPA) has been that it leads to inflated appraisals. more »

Since the gift comes from the seller, doesn't this tie make SF-DPA more risky?

There is nothing wrong with tying downpayment assistance to a seller's property since that does not deprive a potential purchaser of choice. more »

How will SF-DPA act as a stimulus to the housing market?

Hundreds of thousands of otherwise qualified families and individuals are unable to purchase homes because they do not have the required downpayment, whether a consequence of family wealth, divorce, past employment problems, or whatever. more »