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The Nehemiah Grant Program

If you can qualify for an FHA loan, but don't have the money for a down payment, The Nehemiah Program can help. Nehemiah gives you money toward your downpayment. Most people get help from mom and dad. If mom and dad can't help, we can.

What does The Nehemiah Grant Program do?

Nehemiah Progressive Housing Development Corporation is a private California non-profit housing corporation. Nehemiah is not a government program. The Nehemiah Program gifts money to qualified buyers to purchase Nehemiah properties throughout the United States. Nehemiah is also a partner in tax credit multifamily housing developments.

How much gift money from Nehemiah can a qualified buyer receive?

Nehemiah will gift up to 3% of the final sales price to a qualified Nehemiah buyer for down payment and closing costs.

What is a Nehemiah property?

A Nehemiah property is a property that meets or exceeds FHA guidelines and requirements as well as Nehemiah requirements. The seller must supply the buyer with an approved two-year roof certification, and a one-year warranty. In addition, the seller must also enter into an agreement with Nehemiah stating that the property will meet or exceed the above mentioned items.

Doesn't the seller basically pay for the buyers' down payment?

No! Under FHA guidelines, it is inappropriate for a seller to contribute money towards a down payment for a buyer to purchase the seller's property. In fact, the contribution made to Nehemiah by a seller is not used for down payment assistance for the buyer of that seller's property. Before a Nehemiah transaction is scheduled to record, Nehemiah delivers the participating buyer's 3% gift money taken from a pre-existing pool of funds and delivers it to the closing company. The seller makes a contribution only after the successful close. Nehemiah is using its own money from a pre-existing trust fund.

Are the participating properties overpriced in order to compensate for the additional fees?

It is a win-win situation. A Nehemiah property will usually sell for full market value. Most Nehemiah sellers will not accept anything less than the greatest market value for the sales price of their property. Market value is confirmed by an FHA appraisal of the property once a purchase contract has been accepted. The seller sells the property for full-market value while the buyer receives free gift money to help purchase the property.

Doesn't the seller have to be desperate in order to utilize The Nehemiah Program?

No! If you evaluate and look closely at a typical Nehemiah transaction vs. a typical FHA transaction, you will find that The Nehemiah Program will generally net a seller the same amount.

Do sellers benefit by listing their home under The Nehemiah Program?

Any Nehemiah property has the chance of selling faster than property that does not participate with the program because the property has the ability to target more prospective buyers than the non-Nehemiah property. There are many people in the market who have a good job and satisfactory credit, but have not been able to save $6,000 to $9,000 for a down payment and closing costs. The Nehemiah Program is an additional tool a seller can use to sell a home. A participating seller only makes a contribution to Nehemiah after the sale has been recorded. No fee is collected if a non-Nehemiah buyer purchases the property.

How much money does the buyer need to buy a Nehemiah property?

Excluding the 3% gift from Nehemiah, the buyer will need to have a mandatory minimum of 1% of the contract sales price in reserves or into the transaction. Most buyers already have a good portion of the money they need and don't even realize it. If they are renting, they probably have a security deposit. The security deposit can make up half the money. Also, the first mortgage payment isn't usually due for at least 30 days.

How much does Nehemiah charge a seller?

The seller agrees to make a contribution to Nehemiah in the amount of 4% of the contract sales price. The Service Fee is a fee for service as is not tax deductible as a charitable contribution. The Service Fee may be treated as a cost of sale for tax purposes. Sellers should seek independent tax advice on this matter.

Where does the 4% contribution from the seller go?

The 4% contribution is used for many different programs. Nehemiah is involved in building and developing several multi-family housing and single-family housing programs. Nehemiah is rehabilitating homes in lower-income communities and assisting other local non-profits in communities like yours. The 4% contribution, along with other sources of revenue such as loans and other charitable contributions fund Nehemiah's overall operations. Portions of these monies then fund The Nehemiah Program.