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A Cautionary Tale About Loan Grants

By
Real Estate Agent with Long & Foster Realtors

With the Nehemiah grant program drawing to a close, there is still time if you need to shift to another property. Here's the perfect scenario.

Let's say you, the home purchaser, have been approved for an FHA loan using the Nehemiah grant assigned a case number prior to August 31 with the condition that settlement must occur by October 1 to qualify for the Nehemiah assistance. The offer you submitted was on a property with short sale conditions but weeks, or possibly months, have gone by awaiting approval from the lender holding the seller's note. This is not at all uncommon.

You would be well advised to find another house quickly that is not a short sale. Your lender can amend your grant package changing the property address and using the existing case number to meet the settlement deadline.

 

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