Posted by Tom FL on December 14, 1999 at 07:16:10:
FHA guidelines allow for a buyer to receive a gift of up to 3% of the purchase price of a property. This gift must come from a non-profit, normally a 501c3 type corp.
Nehemiah is just such a non-profit (look at www.nehemiaprogram.org). The way there program works is that you as seller give them 4% of the purchase price and they turn around and give your buyer 3%. They keep 1% for the service.
Please understand that I am NOT endorsing nehemiah. Its just another method of being aggressive in marketing.
Check with you local mortgage lenders to find one that participates in Nehemiah. I’m sure they will be happy to provide a further explanation.