Nehemiah offers down payment help to anyone who qualifies for an approved FHA loan. Buyers must have an FHA loan or be pre-approved for an FHA mortgage.

Nehemiah Program

FHA Down Payment Grants for Homeowners

Elimination of Non Profit Down Payment Assistance

On July 30, 2008, President Bush signed H.R. 3221 - Housing and Economic Recovery Act of 2008. Section 2113 of the bill prohibits seller-funded DPA (Down Payment Assistance) for loans backed by the Federal Housing Administration. Prior to this bill, the seller could contribute up to 6% to the buyer to cover either a down payment or closing costs on an FHA loan. The changes took effect on Oct. 1, 2008.

We provide this information for reference only.

The Nehemiah Program has helped over a quarter of a million Americans purchase homes. Unlike some down payment assistance programs, Nehemiah offers down payment help to anyone who qualifies for an approved FHA loan. There are no limits on income or assets, but buyers must have an FHA loan or be pre-approved for an FHA mortgage. The Nehemiah program offers:

Up to 6% of the final contract sales price for down payment and/or closing costs.
Available for first-time and repeat homebuyers.
Approved for new construction and resale homes.
No geographical restrictions.

As with most down payment assistance programs, these funds are not available for "second mortgage" or home equity loans; Nehemiah is intended to help people buy a new home. The process for applying for Nehemiah is similar to most other down payment assistance programs:

Find a house and make the seller an offer.
When the offer is approved, contact your loan officer.
Tell your realtor you want to buy the home using the Nehemiah program.
Your loan officer applies to the Nehemiah program on your behalf.
Nehemiah down payment assistance will be sent before you close on the home.

Down payment assistance programs generally require the seller to pay a fee to participate. This fee is considered a payment for services rendered and not a tax-deductible charitable contribution.

Since this program is no longer available, we recommend that you get pre-approved for a low down payment FHA home loan.

FHA GRANT ASSISTANCE PROGRAMS

The FHA and the Government Crackdown on Loan Fraud

The first thing you learn as a new FHA mortgage borrower is that you can't apply for an FHA loan at just any bank. The FHA must approve lenders to offer FHA loans, FHA refinancing and homeowner bailout programs.

Could Down Payment Assistance Programs Make a Comeback?

Down payment assistance programs allowed the seller and charitable organizations to contribute towards the closing costs and down payment of FHA loans.

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FEATURED SITES:

Helping you make the best financial choices, build wealth, and save money during and after your military service.

-- Military Insurance
-- Military Pay
-- GI Bill Education
-- Military Finance

Offering VA loan products that meet the home financing needs of active duty military and veterans across the country.

-- VA Loan Limits
-- VA Loan Refinance
-- VA Loan Guidelines

Remember, the FHA does not make home loans. They insure the FHA loans that we can assist you in getting.

FHA.com is a privately owned website that provides information about FHA guaranteed home loans, and is not associated with the federal government or HUD / FHA.

FHA LOAN TYPES

-- FHA Refinance
-- FHA Home Loan
-- FHA Secure
-- FHA Reverse
-- FHA Loan (fixed rate)

SPECIAL FHA TOPICS

-- HOPE Act
-- FHA Tips
-- FHA Loan Prequalify
-- Other Loan Types
-- FHA Loan Questions