Nehemiah is one of the oldest programs of it's kind. The program started over 10 years ago and is the only program that is HUD approved. Yes there are others like Ameridream but they are not HUD approved.
What is Nehemiah: Nehemiah is a 503(c) charitable organization that allows sellers to gift funds up to 6% of the final contract sales price. Contact a CPA but could be tax deductible for seller. There are no repayments of these gifts, they are just that gifts.
Who is Nehemiah for: All buyers, first time and repeat home buyers.
Can I only purchase resale homes: No it's available for both resale and new construction.
Do I have to be low income to get approved? No, no income, asset or geographical restrictions, only that you be FHA approved.
Must I live in the property? Yes, this is for owner occupied properties only. Sorry investors.
Are there any fees? Yes there is a processing fee of $499 on resale homes and $385 on new construction. However this often times rolled into the closing costs paid by the seller.
Why would I do this as a seller? By offering this program you open your pool of buyers who are now able to afford your home. Most of these buyers can qualify for higher prices but dont have the funds saved to make a purchase. On average when a seller reduces a price it's any where from 5-20% you would actually make more money offering 3-6% in down payment assistance plus open the pool of buyers. So why wouldnt you do this?
From my previous blog I spoke about FHA Loans and why everyone under $353,750 should be going this route. I also explained that in todays market that it is still very real to purchase a home with no money down.
FHA you need 3% down payment to purchase, ask the seller for 3% in Nehemiah funds or a gift from a family memeber
Closing costs run between 3-5% now ask the sellers for that 3-5% in closing costs. You have essential purchased a home with no money out of pocket.
Oh yeah FHA PMI is half that of a conventional loan so you save money on your monthly payment and is tax deductible.
So when 100% financing was around you had 0 equity in your home, while just like those people you are purchasing with no money out of pocket but you have an instant 3% equity in your home.
So ask yourself why havent you purchased a home yet? When the streets run red with blood, buy buy buy! So if you are looking to work with a professional that understands your needs as a first time home buyer contact me today. If you visit my first time home buyers site you can contact me via instant message if Im online.
For information on buying or selling in Central Florida, Orange County and Seminole County, new construction or Relocation services contact your Lake Mary Real Estate Agent Heather Joubran @ 407-810-6304 or hjoubran@remax.net Seminole County consists of Lake Mary, Sanford, Heathrow, Longwood, Altamonte springs, Winter Springs, Oviedo. Orange County consists of Orlando, Downtown Orlando, Baldwin Park, Windermere, Apopka, Winter Park, Maitland, Disney, UCF, East Orlando, Lake Nona. I can help you with all your housing needs from Luxury Homes to First Time Home Buyers.
"Always work with a Realtor when selling a home. Would you hire a Realtor who has never sold a house before, knows nothing
about real estate law, contract negotiation, or sales? Of course not – but that describes you. Don’t hire yourself – hire a real estate sales professional."
~ Ric Edelman
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