Nehemiah Program?
Hi,
At a recent REI club meeting a mortgage broker was a guest speaker. His topic was the nehemiah program and how this program can really increase your buyers list by helping buyers with zero credit and no down payment purchase your home.
Here is the link
http://www.nehemiahcorp.org/
Has anyone tried to use this? What was your experience?
It sounds like a great opportunity for someone to break into multi family investing. It ranges from 1 - 4 family. The stipulation is you have to live there.
Not only am I familiar with them, I worked for them for about 18 months as an IT consultant.
They are based out of Sacramento, CA.
They have several programs. When I was there, 4 years ago, they would ask the seller to contribute 4% of the sale cost to the Nehemiah Program. 3% would go to a trust fund for future buyers, the remaining 1% would go to overhead. Since competition came onto the market, they have since reduce the 1% to around $800.
The program really doesn't eliminate the credit issue. The real purpose was to provide a way for people to buy a house without having any kind of downpayment. Their thinking was, as a seller you would get your full asking price, but put the 4% towards The Nehemiah Program. The buyer on the other hand, would pay the full asking price rather than try to negotiate the price down.
My argument when I worked there was that all that was really happening was that the buyer was paying more because they paid full price and just ended up financing the down payment. If it's the only way you can get into a house, it's not a bad program.
HTH,
Robert
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Thanks, what are some of their competitors?
Pushcart,
I really don't remember any of their competitors. I bet if you did a www search for 'downpayment assistance programs' you could find some other programs. I believe I saw link several months back on the HUD site for The Nehemiah Program. You might check there to see if they have any other programs.
It's big money, so there's lots of groups out there vying for the opportunity. I'll keep my eyes and ears out for these groups and post them here if I hear of any more of them.
hth,
Robert
Ameridream is the biggest no down payment "charity" I think
Pushcart,
I had some buyers who used the Nehemiah program. Unfortunatly I dont know all the details. The area they wanted to be in had nothing on the market in their price range. We found a FSBO and they worked it out amongst themselves. For buyers it is a way to get into a home without much cash or to buy a little bit more house than would normaly be possible. For sellers it is another tool for moving the property.
I have used the Nehemiah Program with great success on over 50 deals, I would highly recommend!
There is another program called 'HART' that I would also recommend.
Best Riches,
Jeff Adam
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Hi Jeff,
How do I find out about HART?
Thanks!
PushCart:
Try a google search. There is another program at www.Ameridream.com.
These programs are awesome! If you start selling all your houses offerring no money down pretty soon you will establish a reputation for being the no money down King in your area and your houses will sell before they are rehabbed!
Best Riches,
Jeff Adam
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