Nehemiah Progressive Housing Corporation has formed a partnership with Freddie Mac and Chase Manhattan Mortgage Corporation that will dramatically increase the amount of qualifying loans.
The partnership will allow Chase to offer conventional loans with the buyer paying only one percent in cash to close escrow.
In California, the maximum qualifying income is 165 percent, which means a buyer could have a family income as high as about $90,000 and be able to buy a home (after qualifying for the conventional loan) for up to $227,000 sale price with only $2,270 total cash.
The Nehemiah Down Payment Assistance Program was only available to buyers qualified for FHA loans which have a limit of $150,000 and limited income to no more than about 120 percent of the HUD area median income.
The Nehemiah program allows a seller to sign an agreement promising to pay Nehemiah Progressive Housing Development a fee of six percent after close of escrow. In return, Nehemiah agrees to provide a variety of services that include marketing the program to potential buyers, training the sales agents and a five percent gift to the qualified buyer prior to escrow close. The buyer then contributes one percent of his own funds to complete the transaction.
To qualify, buyers must meet the income limits, qualify for the mortgage loans under normal parameters and underwriting guidelines, complete an approved Home Ownership Counseling Course and provide the one percent cash payment and closing costs.
For more information about Nehemiah’s programs, contact the firm’s national marketing company, Invisions Sales & Marketing, Inc. in Sacramento at (916) 557-1712.
