I have personally noticed a drop in business from monitoring our closing from my team of agents because of the loss of Down Payment Assistance. We began to notice the effects in September and they are continuing into October. Many of our leads that we generate from our websites are buyers looking to purchase a home in the Las Vegas Valley for under $200K and are in need of some type of down payment assistance. Prices on Las Vegas homes have dropped considerably over the last two years and it’s creating a tremendous amount of interest from potential buyers but the loss of DPA is causing some buyers to not move forward.
With all the press that the Down Payment Assistance got a few months ago, I thought those that were interested in purchasing a home would know that the DPA was no longer available. But that’s not the case. We still get numerous inquiries a day about what type of Down Payment Assistance we have available for them. Many potential clients are completely shocked after we explain that they cannot purchase a home without a down payment.
Is the loss of DPA affecting your business?
We are not the FHA, VA, USDA, HUD or any other government organization. The content on this blog is intended for information purposes only.
I have lost multilple deals because of this. Our only saving grace in Cedar City is we still have RDA or Farm Loans that are 100% financed with no PMI! The only problem is they require a 2% funding fee at closing so your 100k loan becomes 102k or whatever.