As October Home Sales Plummet, Nehemiah Calls for Reinstatement of Seller-Funded Downpayment Assistance Programs

The following statement was issued by Scott Syphax, president and CEO of the Nehemiah Corporation of America in response to October housing sales numbers released today. The National Association of Realtors reported a decline of 3.1 percent in October existing-home sales.

“As we anticipated, the spike in September home sales was short-lived, driven by hardworking Americans racing to take advantage of seller-funded downpayment assistance (DPA) before it was eliminated on October 1. October housing sales tanked, clearly illustrating the reality we now face in a post-DPA market. Foreclosures are on the rise and banks maintain their stranglehold on credit while lawmakers continue to overlook a simple solution that enables eager families to take advantage of depressed home prices, reducing the glut of homes on the market without spending a single taxpayer dollar. We call on Congress to revisit the important role that DPA has played in providing access to homeownership, and urge them to remove the ban.”

On October 1, as part of the Housing and Economic Recovery Act of 2008, seller-funded downpayment assistance programs were banned. These programs have helped more than 1 million American families become successful homeowners and contributed to roughly 40% of all Federal Housing Authority Loans. Nehemiah is the oldest and largest provider of downpayment assistance, having provided more than $1 billion in assistance to families across the country.