The Nehemiah Down Payment Assistance program is going away in less than two months. This program provides an avenue for buyers to obtain a 3% down payment grant which allows for 100% financing using federal loans(FHA). FHA loans were created years ago to help Americans ralize the dream of home ownership and have once again become critical as this is where the loans will come from that take advantage of Government assistance recently passed by congress. FHA loans will allow buyers to finance 97% of the purchase of their home and then the nehemiah grant of 3% takes it to a total of 100%. Often the seller will contribute the closing costs so we are literally seeing buyers get into homes without a penny out of pocket.
FHA, the government agency that backs these loans is not in favor of these. In fact, they have tried in the past to shut down these programs. What this means to us a Real Estate professionals is that our already small pool of buyers will become smaller.
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