Nehemiah Wins…Good News in the Down Payment Assistance Arena

Posted by Kristal Kraft, Denver Realtor on March 4th, 2008

Nehemiah Down Payment Assistance ~ time to rejoice!

Just got an email notice regarding the popular Down Payment Assistance program called Nehemiah.

Dear Colleague,

I am pleased to announce that Nehemiah was victorious in its litigation against HUD!

Judge Lawrence K. Karlton of the United States District Court for the Eastern District of California upheld Nehemiah’s motion for summary judgment. The Court Clerk’s Office is directed to enter judgment and close the case.

To be clear, the U.S. Department of Housing and Urban Development’s (HUD) rule to ban private down payment assistance as proposed in the “Standards for Mortgagor’s Investment in Mortgaged Property” regulation published October 1, 2007, is permanently set aside.

Mary Steinmeyer, Certified Mortgage Lender

This program enables home buyers to ask the seller for a "grant" for their mortgage down payment. The seller grants the down payment to the buyer via the Nehemiah program. Nehemiah charges the seller a fee for then doing the paperwork and passing the down payment along to the buyer.

This is good news for buyers who lack a mortgage down payment. With down payment assistance they may be able to purchase a home.

I say "may" because typically the seller inflated the price of the home to account for this bonus to the buyer. The appraisal becomes the issue if the value of the house cannot be met. In some markets this may be difficult.

Just the same, buyers say a little thank you to Judge Lawrence K. Karlton. If you ever see him on the street, perhaps buy him a beer! :)

Subscribe to Denver Dwellings

 

Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google
Denver Real Estate Blog, Denver Real Estate Trends, First Time Home Buyer, Home Financing, How to Buy A Home in Colorado

Comments

3 Responses to “ Nehemiah Wins…Good News in the Down Payment Assistance Arena ”

  1. Bob Carney on March 4th, 2008 4:13 pm

    Beautiful…I wasn’t aware of this challenge. Thank you.

    Bob Carney’s last blog post..I guess Friday’s are for Memories

  2. Kristal Kraft on March 4th, 2008 5:42 pm

    I wasn’t aware of the challenge either. For some reason I thought these programs were just going to “go away.”

    It is always nice of lenders (thank you Mary!) to supply us of useful information.

    Pass it on…

  3. Missy Caulk on March 4th, 2008 5:52 pm

    This is great, glad to see they won.

    Missy Caulk’s last blog post..Ann Arbor Rankings on a Good Place to Retire

Got something to say?