Since I’ve seen so much interest with regard to the Nehemiah Down Payment Assistance Program, I asked Scott Fournier, a lender with Integrity Home Mortgage, to explain for us exactly how it works. Scott writes:
A seller will agree within a real estate contract to make a donation to the Nehemiah Program – a non-profit 501©3 corporation whose purpose is to create funds available to help homebuyers purchase a home with little or no money out of pocket. This contribution can be up to 6% of the contract sales price. Additionally, a seller is still allowed to pay separately up to 6% of a client’s closing costs… meaning that the client could have a larger downpayment, all closing costs paid for, and their interest rate permanently bought down with any extra remaining funds.
That gift from the seller is taken out of the seller’s proceeds at closing, and simultaneously, Nehemiah wires funds of that amount less a $499 processing fee to the settlement agent. These funds are then used to pay for a buyer’s downpayment and closing costs.
The process is truly that simple and only a handful of forms are necessary to have signed.
Here are the nuts and bolts from the Nehemiah site:
Thanks to The Nehemiah Program ®, more than 250,000 individuals and families now own homes.
Let us help you achieve the American dream:
· Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
· Gift funds for both first time and repeat homebuyers
(Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)
· Gift funds for both new construction and resale homes
· No repayment of gift money
· No income or asset limits
· No geographical restrictions
If you are a qualified homebuyer using an eligible loan program, such as an FHA loan, The Nehemiah Program can help you become a homeowner.
With the current market climate in northern Virginia, sellers (banks included!) are willing to help on closing costs, so this is an excellent time to make use of this program. If you are interested in learning more about how you can utilize the Nehemiah program to purchase a home, please call me at 571-233-5491 or email me at firstname.lastname@example.org.