NEHEMIAH - An Old Friend With New Value.

Written by:
Stacey Sprain,
NAMP Volunteer Writer

By now everyone knows that the days of downpayment assistance for FHA are numbered. HUD's ruling on October 1st put a new rule into effect November 1st that will no longer allow FHA borrowers to utilize downpayment assistance programs funded through sellers. However, one DPA provider, Nehemiah Corporation of America, has an automatic six month extension that allows them to continue offering downpayment assistance through March 31st of 2008. That extension stems from an April 1998 settlement agreement resolving litigation between Nehemiah and HUD.

At this point it's certainly looking like they will monopolize DPA options from at least November 1st, 2007-April 1st, 2008 so let's take a look at our old friend. Nehemiah. If you've ever been involved in FHA lending and have ever worked on loans that have included DPA, it's pretty darn likely your originators will be utilizing them solely for DPA in the coming months.

The website for Nehemiah's downpayment assistance option is www.getodownpayment.com. Once you bring up their home page, Click on "Mortgage Lenders" which you will find at the top right hand side of the page. I highly recommend opening and reading through all of the available information you'll find at the left hand side of the page so you have a clear understanding of how the program works and of the fees involved.Those links will guide you to helpful information such as program guidelines, required forms and guidelines, Free Training and Marketing Support, Best Practices, Testimonials, etc.

I also recommend taking a look through the material that would be available to other parties involved in any purchase transaction- read the info that is available to actual homebuyers, sellers, real estate agents etc. as it may give you ideas on how to best explain the program to those parties and also some great material worth providing to them as well. There are some helpful booklets and checklists available to those it would interest.

Another important feature of Nehemiah I feel worth mentioning is their Pathways program. Pathways is a debt counseling program that is available to those homebuyers who don't currently qualify for a home purchase due to owing too much debt. By directing such clients to Pathways, they receive credit and debt counseling, are able to work out a sensible budget, they work out debt management plans and are able to pay off their debts faster and more sensibly with the end goal being they become ready for the responsibility of a home purchase. You will find further details about Pathways by clicking on the link to the far left side of the Homebuyers or Mortgage Lenders sections which can be accessed from the home page.

Most importantly, before you can begin utilizing Nehemiah DPA for your clients, you need to register for access rights to the registration screens. Step one is determining if your company is registered yet with Nehemiah. Simply go to and click on the "Register" button at the bottom right side of the home page. Read the data listed and click "next." That will bring you to the search screen where you can search by name, zip code or phone number to find your company name. If you are able to locate your company and confirm it had already registered, simply click "Select" and fill out the registrant data screens where you will need to create your own unique user name and password for the website. If you do not find your employer's name listed, you will need to call Nehemiah to register the company first. Call Customer Service at 877-634-3642. Once they have added your company information to their database, you will be able to proceed with individual registration. Once you have registered and obtained a user name and password, you are included on the automatic update list and can begin registering transactions for DPA.

Don't be afraid to contact Nehemiah's Customer Service Department with any questions or needs. I have found their staff to be very well trained and helpful.

On a side note: Ameridream, the 2nd bigggest player in the DPA arena has filed two suits in federal court to try and stop the enforcement of HUD's ruling. According to Ameridream's update on 10/15/07, HUD has until October 19th to respond to their motions. They are told that the Court is expected to hold a hearing the week of October 22nd and that because the Judge recognizes the urgency and impact of the matter, a decision is likey to be rendered on that day.

About the Writer. As one of NAMP's volunteer writers, Stacey Sprain is currently a NAMP member in good standing and is a NAMP Certified Ambassador Loan Processor (CALP). If you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.