How much do you know about the Nehemiah Program (down payment for Buyers)

Recently received an offer from buyer who wants to fund purchase via FHA, and the Nehemiah Program.

In case you have not yet encountered the provisions of this program, take a look at this website http://www.getdownpayment.com/agents/

Essentially, a "gift" of up to 6% will be applied towards the down payment. But note that this "gift" is actually paid for as part of the processing fee by the Seller. So if buyer is making offer using this program, you may want to factor in that "gift" into the accepted offer price to be clear about what the sellers' sales proceeds really will be after this "gift".

Has anyone closed a deal using this program and what do you think about it?

 
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4 Comments on How much do you know about the Nehemiah Program (down payment for Buyers)

It is 6% now?  I thought it was 3%.  Are lenders still allowing these types of loans in the current mortgage landscape?

05/08/2008 11:49 PM by Bo Buchanan, Blue60.com Directory for Real Estate Pro's & IllinoisHouseHunter (Blue60.com & Kettley Realtors)

From what I understand, it's a total of 6%: 3% towards the down payment, and 3% towards the buyer's non-recurring closing costs.

And yes...lenders are still doing it.

 

05/09/2008 02:14 AM by Pacita Dimacali, REALTOR, e-PRO, SRES (Gallagher & Lindsey, Inc.)

I used to use it a lot before the big housing boom.  It is starting to come back into play.

05/09/2008 08:07 AM by Gene Allen Realtor Hampton Roads Real Estate (Resh Realty Group)

We have used it a few times it is a hard sell to the seller.  They used to add the 6% on top, the issue in the current market is that the home will not appraise.  My thoughts would be to not add more than 3% on top of the list price.

05/09/2008 08:10 AM by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta)

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Real Estate Agent: Pacita Dimacali, REALTOR, e-PRO, SRES (Gallagher & Lindsey, Inc.)
Pacita Dimacali, REALTOR, e-PRO, SRES
Alameda, CA
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