Borrowers for roughly 35 percent of all FHA purchase money mortgages utilized down payment assistance from non profit organizations. As of October 1, 2008 borrowers will no longer be able to obtain seller assisted down payments coming through non profits. Unless a new law reinstates down payment assistance by non profits for FHA mortgages, a large proportion of FHA mortgages will be eliminated. We expect that the recent increases in FHA mortgages will be halted. This might be a temporary situation but it should be visible in our charting of the mortgage data.
Do the mortgagees need down payment assistance to stay in business?