FHA Book

DPA Organization Continues to Fight Ban

AmeriDream, Inc. issued a statement today that had one sentence in particular that bothered me. From a press release defending Down Payment Assistance:

“In addition to jeopardizing homeownership opportunities for qualified low to moderate income homebuyers, the Administration’s position does not comport with the facts…”

The above remark was made by the organization’s president, Ann Ashburn. The word I take issue was is “qualified.” To qualify for an FHA Loan, a potential borrower must be able to put down at least 3% on their new home. If a borrower does not have enough cash-at-hand to make the down payment, he or she is not a qualified borrower. So, technically, AmeriDream assists non-qualified borrowers. If FHA reform passes there could be a down payment as low as 0%. In that case, people who could not put money down would qualify and AmeriDream would have no customers.