After IRS Ruling, FHA Borrowers are Better Off Without Seller-Funded Aid, Says HUD
May 11, 2006
Homebuyers could be well served by financing through the Federal Housing Administration than relying on assistance from seller-funded nonprofit “gift” providers, according to the Department of Housing and Urban Development. In a statement following an Internal Revenue Service action last week against downpayment assistance programs, HUD said that loans with downpayment assistance do not perform as well as loans to borrowers with no such assistance, and that borrowers would be better off with straight…