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Nehemiah, & Other Home Buyer Assistance Programs BANNED by FHA

By
Real Estate Agent with REeBroker CA Lic #01341858

Just another bit of sunshine.

I read a big, bold headline in today's Business section of the Sacramento Bee that, "Down payment plan faces ban"

Sac-based Nehemiah Corp's [borderline-shady-but-totally-legal] practices are slated to be disallowed by the FHA.

Read the whole story here

It looks like when the final ruling happens Monday, the program will shutter in 30 days.

Comments (7)

Connie Olson
Realty World, Executive Group - Orange Park, FL
Broker Associate, GRI
wow, that is big news. I have heard about the Nehemiah program here as well In Florida, however have never used it. Interesting background indeed after reading the full story. I see they have six months to end their program. Very Interesting, and I can see a point in stopping it, as well as allowing it.
Sep 29, 2007 12:17 PM
Wendy Montoya, REALTORĀ® Broker Associate, 254-315-4906
Towne Adams REALTORS - Waco, TX
Very big news here. Will affect a lot of buyers I think. Thank you so much for bringing this to our attention.
Sep 29, 2007 12:28 PM
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City
I did some of these loans for buyers but never liked it. If you are going to buy a house, and KEEP IT. put equity to work. No love lost.
Sep 29, 2007 12:33 PM
Daniel Sundberg
Crystal Springs Real Estate - Kentwood, MI
Hmm, I knew the IRS was looking at disallowing these programs, but I did not realize the FHA was looking to ban them.  Oh well, the programs never did seem quite kosher to me.
Sep 29, 2007 12:51 PM
Sarah Restis
SR Assist - Murrieta, CA

THIS IS HUGE!

Everyone needs to know this. How do blog posts get featured?

S

Sep 29, 2007 03:40 PM
Membership Cancelled
Pullman, WA

We used to have so many buyers use these programs, but I have not seen one for over a year.

Sep 29, 2007 07:34 PM
Carol Knighton
Reverse Mortgage Speciaist - Leesburg, FL

HOLY COW!

This is a major policy shift by the FHA. Even though I don't think it will effect that many unit sales, I do think it will effect the psychology of the market.

It will be interesting to see how this all plays out.

Sep 30, 2007 05:20 AM