The Nehemiah Program offers down payment assistance to anyone qualified for an FHA loan. There are no additional income or asset requirements. Under the Nehemiah Program, buyers can get down payment assistance for up to 6% of the final contract sales price. These funds can also be used to offset closing costs. The program is open to first-time and repeat homebuyers and is approved for new construction or resale homes.
Nehemiah Program funds are not available for a "second mortgage" or home equity loans. The program is intended to help buyers with the purchase of a new home. Once you find a home and make an approved offer, contact your loan officer about applying for the Nehemiah Program. Your loan officer will fill out the paperwork on your behalf and once approved, the funds will be sent prior to closing.
The seller must participate in the Nehemiah program, which charges a processing fee that may be paid by the seller, homebuyer, or lender. Sellers who pay fees to participate in down payment assistance programs are not allowed to deduct the fee as a charitable contribution. These fees are considered payment for services rendered.
Elimination of Non-profit Down Payment Assistance
On July 30, 2008, President Bush signed H.R. 3221 - Housing and Economic Recovery Act of 2008.
Section 2113 of the bill prohibits seller-funded DPA (Down Payment Assistance) for loans backed by
the Federal Housing Administration. Prior to this bill, the seller could contribute up to 6% to the buyer to
cover either a down payment or closing costs on an FHA loan. The changes became effective October 1, 2008.
Since this program is no longer available, we recommend that you get pre-approved for a low down payment FHA home loan.
Q: Is an older home a better value than a new one?
A: There isn't a definitive answer to this question. You should look at each home for its individual characteristics. Generally, older homes may be in more established neighborhoods, offer more ambiance, and have lower property tax rates. People who buy older homes, however, shouldn't mind maintaining their home and making some repairs. Newer homes tend to use more modern architecture and systems, are usually easier to maintain, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs.
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