Make The Seller Pay Your Downpayment

Many times buyers wonder if the sellers would help with their down payment.  They think that if they come in with a full price offer then the seller should be willing to help them out somehow.

There is a completely legitimate way to do this without getting the FBI after you for mortgage fraud.  It’s called the Nehemiah Program.   My seller just got an offer today using this program, and it looks like it’s going to work! 

This works with an FHA loan and allows the seller to pay the buyers down payment and closing costs.  Depending on the buyer’s income level, they can often purchase a house for as little as 1%.  That includes their closing costs so that a buyer can buy a $200,000 house for only $2,000 total cost.  That’s not much more than a rent deposit.

I have sold many homes with this program over the last ten years, but it’s still amazing how many people have never heard of it.  It’s also interesting how many people have never heard of Nehemiah.  He was the guy who was sent by the Persian king Artaxerxes to rebuild Jerusalem.  That’s the connection with the loan program, it is rebuilding homeownership in America.

I have heard rumors that it might be going by the wayside, time will tell.

Oh…in case you are wondering what’s with the photo…that’s just a teaser for an absolutely fantastic ranch style home hitting the market next week.