FHA Down Payment Asssistance 100% financing--Nehemiah Program

The Nehemiah program and FHA mortgages help many MN first time home buyers.

The Nehemiah Program which is a down payment assistance program has helped over 250 million Americans purchase homes. MN First time home buyers can seek down payment assistance from the Nehemiah Program (down payment assistance program supported by a non-profit organization). The intention’s of the Nehemiah program is lend a hand to first time home buyers who qualify for an approved FHA loan. Those MN first time buyers without a substantial down payment might consider a mortgage backed by the Federal Housing Administration (FHA), because down payment assistance is available to borrowers who qualify for a FHA loan. Read more about Nehemiah Program and eligibility.

The Nehemiah program offers:

• Up to 6% of the final contract sales price for down payment and/or closing costs.
• Available for first-time and repeat home buyers.
• No geographical restrictions.
• No repayment of gift money.

Not only is the application process simple for Nehemiah program, but the Nehemiah program is facilitated by a mortgage advisor. Contact a Mortgage Advisor.

Steps for the Nehemiah program:

• Tell your realtor you want to buy the home using the Nehemiah program.
• Find a house and make the seller an offer.
• When the offer is approved, contact your mortgage advisor.
• Your mortgage advisor applies to the Nehemiah program on your behalf.
• Nehemiah down payment assistance will be sent before you close on the home.

Down payment assistance programs require the seller to pay a flat fee to participate. This fee is considered a payment for services rendered and not a tax-deductible charitable contribution. Read more about the Nehemiah participation process.

If you found this information helpful, please send me your comments.

First Time Home Buyers exploring FHA loans

First Time Homebuyers, FHA, and a Down Market

First time Homebuyers are becoming more educated about real estate and mortgages (FHA) by allowing themselves more time to get comfortable with all the elements. First time home buyers have been taking notice. First time buyers with strong credit histories and a sizable down payment are the best positioned to buy right now. Read more about conventional mortgages and eligibility.

Those first time buyers without a substantial down payment might consider a mortgage backed by the Federal Housing Administration (FHA). FHA loans require only a 3% down payment, which can be a gift from friends or family; First time home buyers can also seek down payment assistance from the Nehemiah Program (down payment assistance program supported by a non-profit organization). Down payment assistance is available to borrowers who qualify for a FHA loan. Read more about Nehemiah Program and eligibility.

The numbers of FHA borrowers have been growing substantially. So has the number of mortgage companies who are eligible for originating an FHA loan. Approved FHA mortgage companies are held to a higher set of standards to ensure compliance and transparency. Ask your mortgage professional if s/he is FHA approved. Read more about the FHA loans.

After you become more educated about the real estate and mortgage industry, first time home buyers should always begin the process by asking for referrals from family and friends. Ask other homeowners about their first time home buying experience. I encourage you to contact me with any questions.

You may contact me at scott@uptownfinancial.com or 612-919-2119

If you found this information helpful, please send me your comments.

The Importance of a Credit Score

What is the total financial cost of low credit scores over a lifetime?

Consumers with credit scores of 600 and below (as compared with consumers who have credit scores of 700 and above) will pay two to four percentage points more when financing a mortgage.

Question: How much does each point of interest cost a consumer per year and per month?
Answer: Each point represents 1% of the loan per year, divided by 12 = cost per month.

I.e.: If you have a $200,000 loan each point would cost you $2,000 more per year in interest (1%) making your payment $166 more per month for the life of the loan.

If one person has a 200,000 mortgage loan at 6% as opposed to someone who has a $200,000 mortgage loan at 10% they are paying $8,000 more per year in interest than they should be, this goes on year after year for the life of the loan.

So this means that 2 families can be living next door to each in the exact same home. Both burrowed the same $200,000 from the bank but one family’s mortgage payment is $666 more per month on the very same home.

Remember, not only do you pay more in interest each month for your loan with damaged credit you may also pay dramatically more to take out the loan in the first place.

Question: How much more can getting a loan with damaged credit cost?

Answer: 200 – 300% more!

I.e. when you take out a $200,000 loan it will cost you 1-2% for the loan this is why when you get your payment book it says you owe $202,000 on a home that you bought for $200,000.

However, you could pay 200 – 300% more for your loan with damaged credit. Meaning your outstanding loan will be increased $4,000 - $6,000 each time you refinance for the same $200,000 loan.

This is why most lenders do not have a great motivation to help you improve you credit in any substantial way; they make dramatically more money on people with damaged credit or more specifically, low credit scores. Obviously, this does not describe your loan officer or you would not be hearing about us and our services.

Things that impact you financially because of damaged credit.

1. Mortgage and rent payments
2. Car and recreational vehicle financing
3. Insurance costs
4. Credit card and household financing
5. Business loans
6. Jobs and promotions

People understand that low credit scores cost them more money on the things they finance but they have no idea how MUCH money it costs them.


If you have Credit scores of 600 or below; as compared with
someone who has credit scores of 700 or above you could easily
be paying $500 - $1000 more per month than you should be on the items you are currently financing, because of the higher interest rates you are paying.

Alternatively, if you were to take that same money and invest it over the life of that 30 year mortgage loan each $500 could easily grow into $750,000 during that 30 years. That money could be yours or your creditors, your choice.

At the end of the day you do not repair your credit simply to buy a house or a car. You improve your credit to permanently change your financial life once and for all.