When I first got into real estate, I was working for my parents in Dayton, Ohio. Dayton had (and still has) a very affordable real estate market. It was very common to see most buyers purchasing using FHA financing or other government loans.
When I moved to the Seacoast of New Hampshire back in 1999, I found that FHA and VA financing was hardly ever used. In fact, I was working with a young couple who were TRYING to buy a house VA, but their offers were continuously turned down just because of their type of financing. They went back to Tennessee.
Anyway.... that was then, THIS IS NOW! We are no longer is a sellers market, so sellers need to do whatever they can to appeal to buyers and we need to do all that we can to make homes available to as many buyers as possible.
In April, it was announced that there would be no more 100% conventional financing available due to PMI issues. (You can still get an 80/20; basically a first & a second mortgage to start ~ but who wants to do that?)
RE-Enter: Nehemiah and FHA! It's like an old answer to a new problem!
I was cruising around in the Rain and saw somone comment about the lack of 100% financing and we had just closed one, so I wondered how that could be! I contacted the loan rep that closed our 100% and he confirmed it. He says: "Yeah, you guys got in right under the wire on that one". He then tells me about Nehemiah and how it works with FHA. I think, WOW, this is Great! I call my mom (who's still selling in Ohio) and she was like: "Oh Kath, that's old news!". I've been doing that for years! (Boy did I feel dumb!)
Well, I guess it took a while for us to hear about it up here in New Hampshire because we have been so used to these conventional loans that we forgot all about FHA, VA and other types of loan programs.
Anyway... I checked out the Nehemiah site, took the FREE Training and now we are all set to start offering this to folks.
If you don't already know... Here's the scoop:
Nehemiah is a non-profit organization that is approved to give gift monies up to 6% of the purchase price. FHA works well with Nehemiah because their program accept gift monies. Traditionally, these funds were from parents or other relatives, but now the seller can contribute up to 6% to Nehemiah on behalf of their buyer. This is not a loan, it's a gift!
Buyers don't have to be first timers, and the FHA loan limits are high enough to cover most of the market. Currently, Rockingham and Strafford County, NH is $523,750 for single family homes!
In this market, many sellers are giving up more than 6% of asking price just to get a sale. If they can donate this to Nehemiah on behalf of their buyers, they will make their property available to more buyers, thus making it sell faster and for closer to asking price! BTW... I asked Nehemiah if the donation is tax deductable and they deferred that question to an accountant, so just check with yours!
Agents can get free training, free sign riders, advertising materials and can put their listings that are participating in the program on the Nehemiah site for FREE. More exposure for our sellers!
What about those homes that need work? Well, try the FHA 203K program! Nehemiah works with that too!
IT'S A WIN, WIN, WIN....
Buyers WIN with a down payment gift
Sellers WIN with a larger pool of buyers and probably a quicker sale and higher net
Agents / Brokers WIN with more sales and probably referrals, repeat customers and friends made by helping others to find this WONDERFUL PROGRAM!
If you are looking to buy or sell in the Seacoast of New Hampshire, give us a call! We would love to help you!
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