Scott Fournier, of Integrity Home Mortgage, writes:
As many of you may know, The Nehemiah Program, through court litigation won the ability to remain a viable approved source for downpayment assistance when buyers are using FHA loan programs. Nehemiah is a program by which a seller makes a contribution to a non-profit organization, then the non-profit keeps a fee and then makes a contribution to a buyer. In this way, the buyer’s downpayment and closing costs can be paid for in their entirety. It is an excellent option in our market with many sellers paying buyer’s costs… and remains a viable 100% option for FHA loans when conventional 100% financing is nearly non-existent.
Recently, several people have also inquired about the Ameridream Program. This program is another flavor of ice cream, but still functions the same as Nehemiah. Its benefits are similar in that a seller can contribute monies as a gift to the program, and the program will then give money back to a buyer which can be used for downpayment and closing costs. These two programs in many aspects are the same… however… Ameridream charges a fee of $750 whereas Nehemiah only charges a fee of $499. For this reason, and this reason alone, it makes no sense to use Ameridream when Nehemiah provides the exact same benefit with lower cost taken from the seller’s gift, hence… more money available to then pay a buyer’s costs.
Please feel free to reply to this email or call me with any questions.
I hope this explanation clearly shows you which option will be best for your clients in future.
Ps. By the way, did you know that Integrity Home Mortgage is now fully approved to underwrite, process, close and fund all FHA loans from our Winchester office? Unlike any other major lender in the area, we can keep the entire process in-house and close government loans for FHA buyers as quickly as necessary with better control and fewer headaches. Combine this with the benefits of Nehemiah and you can see why we are closing so many of these loans per month. Please, allow us to show you what excellent service is all about.
I can heartily recommend Scott’s service and professionalism. You can reach him at 540-450-0222 in the office, or visit his website at www.InsistOnScott.com . I have helped a buyer utilize the Nehemiah program to purchase a home; if you would like more information on the program, just ask!