Tanta has noted that, “some of the bigger economic illiterates in Congress,” have sponsored a bill to restore the Downpayment Assistance Program (DAP). (previous posts here)

Basically, it allows a seller to supply the down payment to the buyer in exchange for a higher sales price, allowing people who won’t make a down payment to get an FHA approved loan, which require a down payment.

They funnel the money through a DAP company, and all is forgiven.

The default rate on DAP loans is at least three times those with down payments.

This is something that, “builders, real estate lobbies, and DAP companies,” are lobbying for, big time.

The Congresscritters in question also do not understand insurance apparently, details at link.