Nehemiah Program Update

By
Real Estate Agent with Better Properties Kent

I just heard from a preferred lender of mine who has been communicating with the folks in charge of administering the Nehemiah Program. According to the administrators of the Nehemiah Program, a Loan Officer has to register all of their Nehemiah loans online by 9/30/2008, to reserve the funds. After this date, the loan program will go away.

 

My lender has been trying to get clarification on the deadline to close these loans after registering them. The Nehemiah administrators said their is no specific date because the funds are coming from the Seller and the registration would have been executed by the Loan Officer to hold the funds. 

I am not sure about that answer because I had one FHA Nehemiah transaction in June that I didn't close on time.  The loan was registered and the funds had been at Escrow for 2 days. When my lender called the Nehemiah Program to ask how long the funds could say at Escrow, she was told 3-4 days. After that, the funds would have to be returned.

 

As I find out more on this subject I will let you know immediately. My point is that if you have an FHA Nehemiah deal try to close it as soon as possible.
  
Mortgage rates are on the rise. Today rates are around 6.625% for a 30 year fixed Conventional loan and 6.50 for FHA/VA 30 year fixed. FHA 3/1 arm is around 5.75%.

 

David Edwards
REALTOR
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
Fax: 425-902-1899
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/renton-info-blog.asp
Mobile Site: http://davidjedwards.mofuse.mobi
Community Reports: http://www.topmarketer.net/CSR/CSReport.aspx?CV4GU5KAYOEF
 
David J Edwards is a full time real estate agent and REALTOR with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers.

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Anonymous
workingmom08

I was visiting the Nehemiah website at www.getdownpayment.com, and they had information that I found helpful in defining the language used in HR 3221, which is the Bill that was signed by the President that would eliminate all SF-DPA programs in our country.

Basically, the language states that the buyer must be "credit approved" by September 30.  The closing date is not relevant.  Crdeit approved means that if a loan is manually underwritten, the approval date is the day on which the underwriter signs the Mortgage Credit Analysis Worksheet (MCAW) or the FHA Loan Underwriting and Loan Transmittal (LT).

So the deals do not actually have to close by 9/30, they just need to be locked in.  That's a relief!  Also, questions regarding The Nehemiah Program can be addressed by calling their toll free number.  It is posted there on their website.  I am sure they can answer a lot of questions and misconceptions about this deadline.

Aug 22, 2008 04:48 PM #1
Anonymous
workingmom08

Hi...just thought you should know that there is a new website dedicated to saving downpayment assistance.  The address is www.DPAGroundswell.org.  This site contains an area where you can email comments/letters to your elected officials letting them know you want to help save DPA...FYI

Aug 25, 2008 09:26 AM #2
Rainer
150
Tracey Bennett
BET Management - El Dorado Hills, CA

 i followed workingmom08's advice and went to the www.DPAgroundswell.org  website. Very informative...learned that there was a new bill introduced to keep DPA around indefinitely

H.R. 6694

A bill introduced by Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays on July 31, 2008, that would reinstate SF-DPA. If passed and signed into law, the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) will allow downpayment assistance to continue indefinitely.

Sep 02, 2008 04:16 PM #3
Anonymous
workingmom08

Good for you, Tracey!  More people need to take advantage of that website!  It makes sharing your opinion so easy!  By the way, I have an update: check out this article that talks about a possible compromise between HUD and DPA!  http://www.inman.com/news/2008/09/9/congress-weighs-reprieve-seller-funded-gifts I think if we keep letting our voices be heard, we can truly save Down-payment Assistance Programs in America!

Sep 10, 2008 06:32 PM #4
Anonymous
workingmom08

Here is another update!  Check out this article telling about a possible compromise between HUD and DPA: http://www.inman.com/news/2008/09/9/congress-weighs-reprieve-seller-funded-gifts. Could it be the voice of America has been heard?

Sep 10, 2008 06:34 PM #5
Rainer
157,551
Michael Kitsch
Coldwell Banker - Katy, TX

So, how is it going with your favorite Nehemiah substitute?

Jan 30, 2011 05:56 PM #6
Rainer
157,551
Michael Kitsch
Coldwell Banker - Katy, TX
Do you have several to choose from now?
Feb 04, 2011 11:34 PM #7
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