House Bill 6694 was introduced in legislation to restore the Down Payment Assistance (DPA) programs. Unlike HB 3221, this on is still being debated and has not become law as of yet. Some many people were upset with the elimination of DPA in HB 3221 that some lawmakers sponsored a bill to restore, the product is HB 6694.
This bill isn’t without it’s downside. Come on, if DPA is a source of problems, then we should address those problems and make it work for who it was intented to work for, and that’s what lawmakers are trying to do. There will be a higher cost for those that are higher risk (based on credit score). Previously, credit score didn’t come into play on the DPA, but due to the high number of defaults, it will be used now.
Also part of this bill is the increase of the funding fee from 1.5% to 3%, across the board, doesn’t matter the Loan-To-Value (LTV) or the credit score.
This bill was only recently introduced on the floor and will have many hurdles to get through before becoming a law, of which, everything that I mention may change before then. I will keep you posted on this.