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Okay, so Nehemiah isn't a person, and the money isn't exactly free. So, what are we talking about here? Down payment assistance, of course.

“Wait. That has nothing to do with buying a home. At least not my home. I’d never qualify for down payment assistance.”

No, we're not talking about applying for gifts or grants. This is a new way to help home sellers sell their homes faster, and help home buyers afford a home more comfortably. And this is where down payment providers like Nehemiah® and AmeriDream® come in.

Some home sellers want to get their home to sell faster, so they offer “seller concessions.” Usually, these look something like this on a real estate listing: “Seller is offering a $2,000 allowance for new carpet.” Or, “3% of sales price to build new garage.”

Instead of bribing buyers with carpet or covering closing costs, why not take it further? Why not allow the seller to contribute to their buyer's down payment? Since exchanges of money between buyer and seller are illegal, programs like Nehemiah and AmeriDream have been created to facilitate the process. These are organizations that handle the transaction to make sure the cash is, in fact, being used directly on the down payment.

Having a third party to manage the transaction ensures that no one walks away with cash just for buying the house and no one's pockets get any fatter than necessary. Everybody wins.

So, what does this mean to you as a home buyer?

• Look for homes where the sellers are offering concessions. Then, ask if they’ll provide that concession as a Nehemiah or AmeriDream down payment.
• Make sure your real estate agent is well versed on down payment assistance programs. Your agent can broach the subject with sellers’ agents who have not specifically offered concessions.
• Purchase your home with an FHA loan (only FHA loans qualify for down payment assistance).
• Make an offer including DPA (Down Payment Assistance), especially if you have something to contribute, like fast closing because you have no other house to sell. Sometimes you have to give a little to get a lot.

Down payment assistance programs make buying a home more affordable for some home buyers. Imagine having a 10% down payment – just because you asked for it! The key to negotiating is just that – you won't get anything you don’t ask for. The worst thing a seller can say is no – then you can walk away or change your offer. These days, the ball is in the buyer's court.

And a note to sellers – you can seek out prospective buyers by getting proactive with Nehemiah and AmeriDream – both providers offer marketing materials to help you move your home quicker.

As a buyer, talk to your agent and a knowledgeable mortgage expert about how much you should ask for through a DPA program, and how it will affect your new mortgage.

Related Info

• Find out how to become a Power Buyer with down payment assistance.
• The quick way to FHA is FHA Express.
• Get today's mortgage rates.

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