One could debate the pros and cons of down payment assistance and if you are on the lender's side, you may not like them because of the reduced interest that the buyer has in the transaction. In other words, they have little or nothing to lose if they walk away from the deal after the loans close.
On the other hand, one might argue that it is the only way that a new buyer can get into the game! With lenders requiring more stringent underwriting guidelines and larger down payments, many first time buyers just do not qualify. This, the advocates would argue, is the ticket to getting into your first home! With some states allowing considerable money to be loaned at ridiculously low interest rates, the ability to make the larger down payment is possible and the monthly payments are more affordable.
Agree or disagree with the programs, they seem to be gaining support and may just be another kick start for the real estate market!
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