Nehemiah Program
Loan Assistance Programs Canceled in 2008
Elimination of Non Profit Down Payment Assistance: On July 30, 2008, President Bush signed the Housing and Economic Recovery Act of 2008 which 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. These grants are no longer available.
NEW: Down Payment Assistance Programs for 2018
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.
Discontinued Down Payment Grant Programs:
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FHA Loan Articles and Mortgage News
October 10, 2018 - Depending on your financial needs and goals, it may be tempting to pay off an FHA mortgage faster than the term of the loan. This is a good idea if you need to save money over the lifetime of the mortgage-paying the full term of the loan means paying interest for that full term.
October 7, 2018 - The short answer is that most of them do. There is only one FHA refinance loan that has no FHA-required credit check, and most typical FHA forward mortgages for purchasing a new property will require one. Credit scores and credit history are important factors for home loan approval.
October 5, 2018 - There are two basic stages for many borrowers thinking about applying for a mortgage loan. Whether you are choosing an FHA mortgage or any other type of home loan including refinance loans, there should be a planning stage and an application stage in your home loan process.
October 3, 2018 - This is a common question, and at first glance, FHA loan rules do prohibit using single family FHA mortgages to purchase investment real estate. But much depends on the buyer’s definition of investment property compared to the FHA view.
September 27, 2018 - For FHA 203(b) loans, the amount of money approved for the mortgage must pay for the home and include the add-ons, but no cash is allowed back to the borrower except in the form of a refund. That is one reason why some borrowers ask about an FHA Jumbo Loan.
FHA.com Reviews
FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!
