FHA Down Payment Assistance - NEHEMIAH - 100% Financing? No Money Down? - How it works

This blog is dedicated to helping you understand how the Nehemiah down payment assistance works.

There is really no such thing as a true 100% financing with FHA.  Even when you use Nehemiah and you don't put any of your own money down, you still have a loan for 97%.  Here is what happens:

Let's say you want to buy a house for $200k.  With this scenario, using FHA you would have to put down 3% or $6,000 down.  If you would like to use Nehemiah to help you with down payment, you would have the seller participate and gift Nehemiah $6,000 for down payment assistance.  So, now you still have a 97% LTV loan with a down payment of $6,000.  If you want the seller to NET more, just increase the sales price by 3% or whatever amount to get the desired NET Proceeds to seller.

This is more or less what it means when people refer to doing "100% financing" with the help of Nehemiah.  Obviously you can play around with the #s (sales price).  Your final purchase price and what you're asking the seller to give will affect the strength of your offer.

Hope this helps!