“We have to be open to looking at how we can solve this problem, because it’s a really big problem in America right now,” Adams told Mortgage Professional America. “The opportunity to own a home shouldn’t be left to only those with wealth or those who have family money. We need to keep it available, an opportunity available to everybody.”
It appeared that the Trump administration could cut federally backed downpayment assistance programs. For now, a federal judge has blocked Trump’s attempt to freeze funding. Adams said it was a close call for those programs, but they’re not out of the woods just yet.
“We had that recent proposed freeze in federal funding that threatened hundreds of homebuyer assistance programs, and you know that that was a threat,” Adams said. “We don’t know what we’re going to see ultimately, what programs will be eliminated, if any, or what freezes will be fully enforced. But there’s no question that it could impact up to one-third of the housing assistance programs. That would not be a good result, because we’re just so challenged as it is.
“Our home buyers need as much help as possible right now. So, scrapping any of the programs or putting them on hold, freezing them would be a real detriment to what we’re seeing in America, which is the affordability challenge.”
Privately backed down payment assistance programs may be one solution
If federal programs are cut, brokers may have to steer customers to privately backed down payment assistance programs.