PRESENTATION OUTLINE
• Nehemiah Corporation of America
• The Nehemiah Program
– Overview & Highlights
– Homebuyer Requirements
– Property Types
– How It Works
• Advantages of Homeownership
• Homebuyer Frequently Asked Questions (FAQs)
• Get Started TODAY for Homebuyers
• Preparing for Your Mortgage Pre-Approval
• Recommendations for the Homebuyer
NEHEMIAH CORPORATION OF AMERICA
• Established in 1994
• Nonprofit 501(c)(3) community development corporation
• Nationwide affordable housing programs
– The Nehemiah Program:
• National launch in 1997
• Provides downpayment assistance
– Other charitable organizations include:
• Nehemiah Community Reinvestment Fund, Inc. (NCRF)
• Nehemiah Community Foundation, Inc. (NCF)
• Nehemiah Urban Ministry Initiatives (NUMI)
• Devoted to assisting individuals and families gain access
to safe and affordable housing
THE NEHEMIAH PROGRAM HISTORY
• Flagship program
• Created the downpayment assistance industry
• Nation’s largest and most trusted downpayment
assistance program
• Over 250,000 individuals and families have become
homeowners using The Nehemiah Program
• $1 billion provided in gift funds
• $60 million generated in charitable and community
reinvestment activities nationwide
THE NEHEMIAH PROGRAM OVERVIEW
• Exists for one simple purpose:
Helping People Become Homeowners
• FREE gift funds up to 6% of the contract sales price
– Downpayment
– Closing costs
THE NEHEMIAH PROGRAM HIGHLIGHTS
• No repayment of the gift funds
• First time and repeat homebuyers
• New or resale homes
• No geographical restrictions
• HUD approved
HOMEBUYER REQUIREMENTS
• Homebuyer must utilize a loan product which:
– Accepts a “gift” for downpayment from a nonprofit
charitable organization
• Example: FHA insured loans
• Homebuyer must purchase a home from a builder/seller
who has made their home eligible for purchase by a buyer
receiving Nehemiah gift funds
PROPERTY TYPES
• Property types include owner-occupied:
– New or resale home
– Condominium
– Duplex, triplex or fourplex
– Townhome
• Property type must qualify with the loan that the
homebuyer is using
THE NEHEMIAH PROGRAM HOW IT WORKS
• The Nehemiah Program provides gift funds to homebuyers
who purchase participating homes using an eligible loan
product
• Gift funds are requested by mortgage lenders on behalf of
qualified homebuyers
• Nehemiah wires the gift funds prior to closing
• After the close of sale, the seller contributes an amount
equal to the homebuyer's gift amount
• A small processing fee can be paid by either the seller,
buyer or lender
• Contributions and fees are reinvested for future
downpayment gift funds and community development
programs across the country
ADVANTAGES OF HOMEOWNERSHIP
• Fixed-rate mortgage vs. variable rent
• Pride of homeownership
• Increase property value with home improvements
• Move-up potential
• Keep up with inflation
• Community involvement
ADVANTAGES OF HOMEOWNERSHIP
• Build wealth through homeownership
– Equity
– Appreciation
– Tax deductions
• Mortgage interest
• Property taxes
• Closing costs
• Discount points
• Origination fees
• New mortgage (in some states)
• Check with your lender or tax adviser on these items
HOMEBUYER FAQS
Q.
Do I have to pay the money back?
A.
No. The Nehemiah Program gifts downpayment and
closing costs to homebuyer(s). There is no repayment
of the gift funds.
Q.
Do I have to purchase a home in a certain area?
A.
No. There are no geographical restrictions. You may
purchase a Participating Property in any area.
HOMEBUYER FAQS
Q.
Can I purchase a new home?
A.
Yes. Both new construction and resale homes are
eligible. In fact, Nehemiah partners with many
homebuilders across the nation. To view Participating
Properties, find a new home community near you or
contact a local real estate professional knowledgeable
about The Nehemiah Program, visit
www.getdownpayment.com.
Q.
Do I have to be a first time homebuyer to use
The Nehemiah Program?
A.
No. Both first time and repeat homebuyers are eligible
to use The Nehemiah Program.
HOMEBUYER FAQS
Q.
Is this a low-income program?
A.
No. There are no income limits or asset restrictions.
No matter what your income, if you’re using a loan
product that allows gift funds from a nonprofit
organization to purchase a home, your lender can
request up to 6% of the contract sales price for
downpayment and closing costs on your behalf.
Q.
What is a “Nehemiah Participating Home”?
A.
Any residential property that the seller has made or will
make eligible for purchase by a buyer receiving
Nehemiah gift funds. The seller agrees to sell their
home using The Nehemiah Program by signing the
Participating Home Agreement.
HOMEBUYER FAQS
Q.
Will using downpayment assistance delay when
I can move into my house?
A.
No. Gift funds work in conjunction with an existing loan
product (such as an FHA loan) so the process and
underwriting are the same. There is no reason for this
process to be extended. In fact, the paperless Online
Processing System (OPS®) allows Nehemiah to
process a gift funds request on the same day it is
received. Nehemiah wires the gift amount requested by
the lender on behalf of the buyer at least 24 hours
prior to closing.
HOMEBUYER FAQS
Q.
Can I negotiate the sales price before telling
the seller that I want to use downpayment
assistance?
A.
Typically a homebuyer using downpayment assistance
will purchase a home at market value without further
negotiations or price reductions. This allows the seller
to make a contributions back to Nehemiah after the
close of sale and still maintain their desired net
bottom line.
HOMEBUYER FAQS
Q.
Doesn't the seller basically pay the buyer's
downpayment?
A.
No. Under mortgage guidelines, it is inappropriate for a
seller to contribute money towards a downpayment in
order for a homebuyer to purchase the seller's
property. Nehemiah wires the money requested on
behalf of a homebuyer from its pre-existing pool of
funds and forwards it to the closing/title company.
Only after the close of sale does Nehemiah collect
the seller’s contribution and a small processing fee.
GET STARTED TODAY!
Homebuyers:
•
Work with the industry professional(s) who are involved
in this homebuyer educational event. They are already
familiar with The Nehemiah Program and have a genuine
desire to help you become a homeowner.
•
Call Nehemiah Customer Service at 877-634-3642.
Helpful representatives can answer any questions you
may have and provide you with referrals to real estate
professionals, builders and mortgage lenders in your
area.
GET STARTED TODAY!
Homebuyers:
•
Get pre-approved for a home loan. This step lets you
know how much house you can afford.
•
Find Your Dream Home! Use a Designated Nehemiah
Specialist or New Home Builder Partner to find your
dream home.
•
For more information, visit www.getdownpayment.com
PREPARING FOR YOU MORTGAGE PRE-APPROVAL
• In preparation for your pre-approval, have the following
information (where applicable) on hand when talking to
your lender:
– Last 2 years W-2’s and tax returns
– Recent paycheck stubs (30 days)
– Last 3 months bank, stock and asset statements
– Last 12 cancelled rent or mortgage payment checks
– Picture I.D.
PREPARING FOR YOU MORTGAGE PRE-APPROVAL
• Self-Employed:
– Last 2 years of completed personal and business tax
forms
– Year-to-date profit & loss and financial statements
• Veterans:
– Certificate of Eligibility
– DD214 (if certificate is not available)
RECOMMENDATIONS FOR HOMEBUYERS
• Free Nehemiah Online Homeownership Education Course
– English language:
http://www.getdownpayment.com/buyers/hec.asp
– Spanish language:
http://www.pagoinicialgratis.com/buyers/hec.asp?tab=1
• Home Inspections
– Impartial evaluations that provide homebuyers with
information about the property’s overall condition
RECOMMENDATIONS FOR HOMEBUYERS
• Free Nehemiah Online Post-Homeownership Education
Course
– English language:
http://www.getdownpayment.com/buyers/posthec.asp?tab=1
– Spanish language:
http://www.pagoinicialgratis.com/buyers/posthec.asp?tab=1
• The New Homeowner’s Handbook. What To Do After You
Move In, written by Nehemiah Corporation with Barbara
B. Buchholz and Margaret Crane
– Comprehensive look at what new homeowners can
expect
– Available online at www.amazon.com