Mortgage Down Payment Assistance Program
There are programs like Nehamiah, Ameridream, you can even use them with FHA financing.
http://www.fha.com/program_ameridream.cfm
I am personally doing a deal right now with Nehamiah with FHA, let me go over a little bit about how it works.
The seller participates into this program and pays a fee at closing to this company, the company charges a processing fee, on my transaction it’s $295. Then the buyer is able to get a similar amount from Nehamiah for the time of closing. The seller doesn’t owe it unless the deal goes through. This idea has been tested with the courts and passed.
The form I have right now with Nehamiah is a 1 page form that the seller signs.
The website is www.getdownpayment.com 1-877-634-3842
There is a contribution amount of 1-6% on one line. Another line has the processing fee. Another line has the total amount due to Nehamiah Corporation of America.
They claim to be the largest privately funded down payment assistance program. They describe it as gift funds for the buyer. The seller signs, and prints there name and fills out the address.
It does read as the following:
Note: You are only committed to pay the above contribution and fee if a home buyer utilizes the nehamiah program to purchase your home.
What I like about this program is right now with 550-600 credit scores we have had people getting loans done up to 100% financing. How do we do this? Well with the Nehamiah program that contributes 3% and the other 3% in closing costs paid by the seller rolled into the loan, that helps to make it almost no money out of pocket for the buyer. Buyer may still need to pay for an appraisal, maybe an inspection, but it’s really easy with this program and the credit scores and other qualifying standards are pretty fair.
If you want any help at any point looking at properties and aren’t working with an agent, let me know ron@minnesotainvestors.com
