Everything was great and you were helpful, and professional.  
Gary S.-St. Mary's County, MD.

Get Loans Loan Programs

The FHA Nehemiah Program

1% Down Payment/Closing Cost Grant FHA Loans ONLY

Lenders and Real Estate Agents are NO longer required to be certified by Nehemiah

Closing Offices are required to be certified. At time of application, make sure that the Closing Office has received its ID Number from Nehemiah. If not, the Closing Office needs to complete an application immediately, since it may take several weeks before the Closing Office will receive its certification material, including the ID Number. Closing offices can go online to get approved at: www.nehemiahprogram.org

The Nehemiah Program -- FHA Loans ONLY

(Down Payment and Closing Cost Assistance Program)

The Nehemiah Program provides a grant to qualified buyers using FHA loan products. The Nehemiah Program is administered by Nehemiah Home Ownership 2000, Inc., which is a charitable organization. Builder/Seller must sign an agreement to become a participant in The Nehemiah Program and agree to pay a 4% Service Fee to Nehemiah (funds will be netted out at closing), this is usually built into the cost of the house. Nehemiah will contribute a gift of 3% towards closing costs and down payments.

Nehemiah 3% Grant: This is a Gift. No repayment. No Promissory Note. The Nehemiah Grant is not considered a Seller Contribution; consequently, Seller Concessions are allowed. The 3% gift funds cannot be used for the purpose of paying off debts or other obligations, or for interest rate buydowns. The 3% gift may be used for closing costs, prepaids, and downpayment.

  1. 1% Cash Requirement -- Nehemiah stipulates that the buyer must:
    2. a. make a cash investment of 1%, or
    b. show cash reserves of 1%, or
    c. show proof of a verified gift of 1%
  2. Occupancy
    3. Owner occupied, primary residences ONLY
  3. Homebuyer Education
    4. Certificate of Completion of Home Ownership Counseling is required for the borrower and all occupant co-borrowers.

FNMA's Booklet A Guide to Homeownership Workbook can be used which the lender usually has, or see HUD's Approved Counseling Agencies. You can see Nehemiah's Internet address www.nehemiahprogram.org. for a copy of HUD's approved Counseling Agencies.

Property Types: Single Family Attached/Detached, Condos and PUDs, 2-4 Units (one unit must be occupied by Borrower) New Construction and Existing Homes.

Loan Purpose: Purchase money transactions only.

Sales Contract: Existing Homes - Nehemiah recommends that you include the following wording in the Sales Contract: "This contract is contingent upon the buyer receiving up to 3% gift funds from The Nehemiah Program. The seller agrees to the terms and conditions of the attached Participating Home Agreement and will incorporate those terms and conditions into this purchase and sale agreement."

New Construction (builder must be approved, see below): Builders must be enrolled in The Nehemiah Program prior to the loan. You can enroll a Builder on the Internet; however, we recommend that you contact a Nehemiah representative directly, since this process is much faster than enrolling on the Internet. (Internet processing may take up to 4 weeks).

A Nehemiah representative will either meet with builders or conduct a conference call to explain the program in detail. Builders may not participate in the program without a meeting or conference call with a Nehemiah representative. Nehemiah's representative will complete the Home Builder Participation Form at the meeting, allowing the Builder to begin marketing theprogram.

Service Fee: The 4% Service Fee will be netted out of proceedsat time of closing.

The Service Fee is a fee for service and is NOT tax deductible as a charitable contribution. The Service Fee may be treated as a cost of sale for tax purposes.

Sellers should seek independent tax advice on this matter.

Warranties:

Warranty Requirements -- Seller must agree to provide the Buyer with:

  1. 1-Year Home Protection Plan/Home Warranty. You may use any company.
  2. Termite Certification, if applicable
  3. One of the following:
    1. Written proof of a 2-year roof coverage Rider to Home Protection Plan. See below for additional information.
    2. 2-year Roof Certification by a licensed roofing contractor, see below.
    3. Evidence of coverage from HOA, see below.
    4. Paid invoice for a new roof with at least 2 years remaining on transferable manufacturer's warranty and labor warranty, see below.

Special Note on Roof Certification The Roof Certification must be by a licensed roofing contractor stating that the roof covering, over the livable area of the home, will be water-tight or moisture proof for a minimum of 2 years from the date of certification. If the roof covering was recently replaced, Nehemiah will accept a copy of the paid invoice as long as there is a written transferable warranty with aminimum of 2 years remaining on the labor warranty and manufacturer's material warranty.

Special Note on Home Warranty in Lieu of Roof Certification As an alternative to a roof certification, Nehemiah will accept evidence of a Rider to the Home Protection Plan - the Rider must have a 2-year roof coverage warranty.

When you order the Rider, refer to Nehemiah's 2-year roof coverage warranty. See attached list of Home Warranty Companies that offers this coverage. You may use any company that offers this feature, or a company noted on Nehemiah's list.

Special Note on Condominiums If the roof covering is the responsibility of an association, Nehemiah will accept a letter from the association stating that the roof is in good and serviceable condition and that the association is responsible for the condition of the roof in lieu of a roof certification.

Sales Contract: Existing Homes - Nehemiah recommends that you insert the following wording on the Sales Contract: "This contract is contingent upon the buyer receiving up to 3% gift funds from The Nehemiah Program. The seller agrees to the terms and conditions of the attached Participating Home Agreement and will incorporate those terms and conditions into this purchase and sale agreement."