Nehemiah is on the verge of becoming a thing of the past! Nehemiah is a non-profit organization that assisted buyers with a down payment for their home purchase. We have been fighting the opposition to keep Nehemiah alive for some time now. HUD is on the team to get rid of this assistance. The concerns from  HUD are the following: 

1) High percentage of the FHA fallout is from those that received Down Payment Assistance

2) Values inflated to accomplish the credit

3) The seller stands to financially benefit from the transaction so agreeing to cooperate with Down Payment Assistance is essentially a forgone conclusion.

 Honestly, I would hope that Nehemiah would stay forever and I am full of my opinions as to why they should have it stay but I will save those for another day. The reason that I have written this post is simply to let you know that we should prepare your clients to come up with 3% down. This can be a gift and that is one of my points of contention. However, it is what it is.

The last of the free lunches is coming to a close!!!!!!!!!!!!   Maybe! Stay Tuned for the official Announcement.

 
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3 Comments on Free Lunches may be coming to a close!!!

Spokane Washington Real Estate Expert Yeah, i doubt that it has anything to do with the mortgage problems, because most everyone was doing conventional loans not FHA. We still don't see many HUD homes so I disagree. But I hope this program stays

07/22/2008 07:49 PM by Spokane Real Estate - Ross Quintana (Team Quintana Real Estate - MJ McAdams Realty Lic#3015)

I think this is yet another knee jerk reaction.  Obviously the gift programs are not the reason for the current mortgage crisis.  Removing this program will once again slow down a housing market that was starting to pick up some steam, at least in my area.

07/22/2008 10:01 PM by Cindy Jones-Northern Virginia Real Estate & Military Relocation Services (RE/MAX Allegiance #1 RE/MAX Company in the World)

Thank you both for your response. Based on the information we have been hearing it appears that this will be gone. We will have to September 30th to be incontract and approved with an FHA case number. They are also looking to move the minimum cash investment to 3.5%.

 

Stay tuned and thanks again.

 

07/24/2008 02:17 PM by Matt Freeman; Broker- California Mortgages (Capitol Mortgage Corporation)

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Loan Officer: Matt Freeman; Broker- California Mortgages (Capitol Mortgage Corporation)
Matt Freeman; Broker- California Mortgages
Roseville, CA
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Capitol Mortgage Corporation

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