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 2017
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:
FHA Loan Articles and Mortgage News
September 3, 2017 - There are many different types of FHA loans available for borrowers who want more options than a typical suburban home. Many types of properties may be purchased with an FHA insured mortgage, including manufactured homes, multi-family units, and condominiums.
August 12, 2017 - If you have never heard of an FHA Jumbo Loan, you’ll be interested to learn that this is a mortgage which exceed the county limit for mortgages in a given zip code. You may be eligible to apply for an FHA home loan in excess of FHA loan limits, but there are things to understand before you apply.
July 19, 2017 - The 203(K) Rehab loan is the FHA's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.
July 12, 2017 - FHA loan rules for the single-family loan program are designed for owner-occupiers, but depending on circumstances a borrower may be approved by a participating lender to buy another home--usually in response to a pragmatic need like a larger family or job requirements.
July 7, 2017 - Are there major differences between FHA loans and conventional loans? Why do borrowers choose FHA mortgages over conventional loans? A participating FHA lender can offer qualified borrowers lower interest rates, early payoffs without a penalty, and more.
