Can we use The Nehemiah Program to help payoff a homebuyer’s debt as well as for downpayment? No, you may not use Nehemiah gifts funds to payoff homebuyer debt. According to HUD guidelines, gifts funds cannot be used to pay off homebuyers' consumer debt. Gift monies can be used to pay downpayment and closing costs. What is a “Nehemiah Participating Home?” A Nehemiah participating home is a home owned by a seller who has entered into a Participating Home Agreement with Nehemiah, acknowledging that the seller has made his or her home available for purchase by a homebuyer receiving gift funds. Any home on the market can be purchased using our program, provided the seller agrees to the Nehemiah participation requirements. A participating home may be an existing (resale) home or a new home offered by a homebuilder. Doesn’t the seller basically pay the homebuyer’s downpayment? No, the contribution paid by the home seller is not used for the homebuyer's downpayment assistance. Nehemiah provides the gift funds to the homebuyer from a pre-existing pool of funds by wiring the funds to the closing/settlement company before the loan is closed. The seller pays a contribution to Nehemiah only after the loan has successfully closed. Further, the seller, lender, or homebuyer pays a nominal processing fee to Nehemiah after the loan has closed. The contribution collect- ed from the seller replenishes Nehemiah's pool of funds for future gifts to other homebuyers. What are the basic program requirements? There are four basic program requirements:
Is the contribution that the seller pays to Nehemiah considered a chari- table donation for tax purposes? No, the seller contribution that is paid to Nehemiah is NOT tax deductible as a charitable contribution because the seller derives the full benefit of the contribution through the sale of a home. However, this contribution may be tax deductible as a cost of sale, similar to that of a sales commission. Nehemiah recommends that sellers contact their personal tax advisor for questions regarding tax deductibility. How can you afford to give away money? We have a pool of funds that comes from contributions and processing fees that are paid by the homebuyers, lenders, builders and sellers who use our program. How can it be a gift when the seller increases the sales price of the home? This is not how The Nehemiah Program works. The sales price of the home must always be supported by an appraised value. If you have any questions or concerns regarding the sales price of the home, please contact your lender. Can any real estate agent utilize The Nehemiah Program, and what properties can be sold to Nehemiah homebuyers? Any real estate professional can use The Nehemiah Program. There are no enrollment or registration requirements. Properties sold to Nehemiah homebuyers are financed with a mortgage loan that allows gift money from a charitable organization. Typically the mortgage loan is an FHA or a conventional loan that allows gifts from charitable organizations. Why and how do sellers agree to make their homes “Nehemiah Participating Properties?” The Nehemiah Program makes homeownership available to the largest pool of homebuyers in every market in the nation. Being able to market your listings, as “Free Gift Money Available - Zero Total Cash Can Move You In” will greatly increase the exposure of your property listings. Sellers benefit with more qualified showings from pre-approved prospects. This usually results in a faster sale, usually at full price! Can any mortgage originator utilize The Nehemiah Program? Yes, any mortgage originator can use The Nehemiah Program. Mortgage originators must use an eligible single-family 1-4 unit loan program such as an FHA loan or a conventional loan product that allows gifts from charitable organizations. Do Nehemiah transactions take longer to close/settle? No, Nehemiah transactions do not take longer to close/settle. Mortgage lenders process and underwrite the loan the same way regardless of the source of gift money. Mortgage lenders request Nehemiah gift funds on behalf of the homebuyer, and provide simple closing instructions to the closing office. Nehemiah professionals do the rest - it's that simple! If I refinance my existing home loan can I get Nehemiah Gift Funds? No, you may not receive Nehemiah gifts funds when you refinance your existing home loan. The Nehemiah Program provides gift funds to assist people in obtaining homeownership. Do I have to repay the gift? No. The gifts funds are monies offered by Nehemiah to qualified homebuyers requiring no repayment, no silent second mortgage, and no re-capture penalties. Once the homebuyer and seller agree to participate in The Nehemiah Program, the money given to the homebuyer is a true gift. Nehemiah charges a nominal processing fee that may be paid by the seller, lender, or homebuyer. |
| What is The Nehemiah Program®? |
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