A few facts about the Nehemiah Program PDF Print E-mail
Nehemiah Down Payment Assistance ProgramsA seller recently asked me, "Another agent brought a buyer in and asked if I would be willing to sell through the Nehemiah program. Have you ever used this program? Is it worth the time or should I wait for a buyer with a down payment?"

I thougth that I would answer a few of these questions for everyone here on my website.

For those not familiar with this, the Nehemiah Program provides gift funds for down payment and Closing Costs to a qualified buyer who is using an eligible loan program such as a FHA Loan. The gift funds are an amount from 1% to 6% of the contract sales price to be used towards the purchase of a participating home. These gift funds do not have to be repaid.

This, on the face of things, looks fine...and you may find a willing buyer through this, or similar programs, quicker than you could get a buyer from the conventional market.

However, there is a downside for sellers. First, to best explain the program, I would use the term "charitable kickback". What that means as a seller is that it is going to cost you money. If the buyer will be receiving a 5% assistance, the SELLER will be paying the Nehemiah Program 6% at closing. Thus, in actuality, the SELLER is paying for the assistance at closing....plus some amount, usually about 1%, for the overhead of running the program. If you are willing to pay this, then these types of programs can bring you buyers that usually would be unable to purchase your house.

Also, the other downside is that closing dates are usually extended somewhat over usual loans. In the Raleigh area, closings average 30 to 45 days from the date of the contract. These types of programs add about two weeks to the process. So, closings can be up to 60 days, or more, from contract date.


William "Art" Sexton
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William "Art" Sexton
Northside Realty
4701 Creedmoor Road, Ste 105
Raleigh, NC 27612
Mobile: (919) 696-3302
Info@Raleigh-Real-Estate.biz
www.Raleigh-Real-Estate.biz