Lets talk Real Estate - Down Payment Assistance Program
Nehemiah Program: Been around since 1997
This program is great for buyers that do not have a down payment and the seller is willing to participate. There are two main factors to this non profit program. Nehemiah will allow the seller to gift to buyer between 1-6% for down payment assistance. The average down payment contribution is 3%. Credit is not a factor for this program.
- No repayment of the gift funds
- No income, asset or geographical restrictions
- Free nationwide training and marketing support
- Free online homeownership education
Advantages:
- Ability to sell at full market value
- Increase buyer pool
- Reduce marketing time
- Simplify negotiations
- Fast Processing
Requirements
1. Buyer must pre-qualify and it can be with any lending institution, however, the buyer must let the loan office know up front that he is looking to participate in the Nehemiah program. Qualify for an eligible loan product that will ermit charitable organizations to provide gift funds to be used toward a buyer's downpayment and closing costs.
2. The Seller must participate by contributing from the seller's proceeds the amount (between 1-6%) to help the buyer with the down payment. Prior to close, funds are wired to escrow and escrow will close. After closing the seller must agree to pay Nehemiah from the seller's proceeds. The seller is essentially reimbursing the Nehemiah program for paying upfront. Remember the proceeds are coming from the seller's concession of the sale. Nehemiah has a class that the seller can participate and complete if they like and they also certify real estate agents with Webinar training online. Training is free. Nehemiah offers sign writers and has a listing system for properties that are participating in this program. Any type of sale is allowed to participate in this program - even short sale if Seller and seller's Lender agree.
This contribution can be a write off for the seller.
For more information on this program give Nehemiah a call at 877-634-3642 or visit their site at http://www.getdownpayment.com/. Nehemiah gift funds can be requested using the Nehemiah online processing system (OPS) or with a standard paper form. Online gift funds requests are processed same day. When you visit the site go to lenders section for the latest forms and guidelines. They offer 200% guarantee -
Hope you find this useful.
Rosemary
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Another website along similar themes in called www.ameridream.com.
This is a non-profit company that provides qualified homebuyers with a downpayment on their first home. Of course restrictions apply but they are 100% legit and they like to work with agents and investors who represent clients trying to buy a first home. You as the agent or investor can even make the donation on behalf of your client. While making the donation may sound crazy at first think about the potential benefits: opening up your buyer pool, tax advantages, developing relationships with a non-profit, giving back to the community, and the list goes on.