Seller-financed down payment assistance wins a round
Gaithersburg-based AmeriDream Inc. today got the temporary injunction it was asking for against a U.S. Department of Housing and Urban Development ban on a type of down payment assistance for buyers.
U.S. District Court Judge Paul L. Friedman’s ruling will keep the regulation banning seller-financed assistance from going into effect today as planned, according to the court filing. AmeriDream's press release is here.
AmeriDream is one of the nonprofit organizations that offers down payment help to low- and moderate-income buyers getting mortgages insured by the Federal Housing Administration. The nonprofits get their money from the homes’ sellers, which HUD has criticized because a higher-than-average percentage of the borrowers end up in foreclosure.
