Down Payment Assistance in Atlanta
May 13, 2008 | Leave a Comment
The Nehemiah Program
This morning I had the privilege of attending a seminar about down payment assistance and how it can benefit both buyers and sellers in the greater Atlanta market. The seminar was taught by Leslie Kane, Area Manager, of The Nehemiah Program. The Nehemiah Program is charitable organization that has helped over 40,000 families in Georgia achieve their dream of home ownership.
The Nehemiah Program began in Sacramento, California in 1994 and was designed to help a particular community become more stable. The program gets its name, Nehemiah, from a biblical figure that helped rebuild the walls of Jerusalem and since the program was being utilized to help rebuild a community it just seemed to fit.
How Down Payment Assistance Works
If a buyer is qualified to purchase a home using FHA financing then they are automatically qualified to purchase a home using the Nehemiah Program. The home being purchased must be owner occupied and can be single family, duplex, triplex, quadraplex or a FHA approved a condo. With FHA loans the buyer is required to make a minimum down payment of 3% of the loan amount. By utilizing the Nehemiah Program the seller contributes the down payment for the buyer. At the time of entering into a contract with a buyer for the purchase of the home, the seller agrees to contribute the down payment and a small processing fee to the program. This is accomplished using the Participating Home Agreement form from Nehemiah. The program in turn contributes the down payment for the buyer. The buyer completes a Gift Letter form detailing where the gift funds came from and what address they will be used for purchasing. This type program can only be performed by a charitable organization. (Sellers are only committed to pay the contribution and fee if a buyer utilizes The Nehemiah Program to purchase the home.)
Who Benefits From a Down Payment Assistance Program?
The Nehemiah Program is helping both buyers and sellers in the greater Atlanta market. Obviously buyers benefit by being able to purchase homes with little or no money out of pocket. Generally speaking this type program would be for buyers with credit that is good enough for them to be able to purchase a home but they lack having the funds for a down payment. Typically prospective buyers who are currently renting or living at home are good candidates for this type program.
Sellers are also benefiting from this program. With the recent increase in FHA loan limits to $346,250 in the metro Atlanta area and $271,000 in outlying areas, more home sellers find themselves in a position to participate in this type program.
Who Qualifies For Down Payment Assistance?
As was stated earlier, if a buyer is qualified to purchase utilizing a FHA loan then they are automatically qualified to participate in this down payment assistance program. To find out if you qualify for FHA financing and down payment assistance Contact Mack.
Insurance NOT Paid By Homebanc
May 1, 2008 | 1 Comment
Today I received this email from a gentleman seeking help because his homeowners insurance had not been paid by his mortgage company.
Your topic: "Homebanc Mortgage Escrow Accounts" came up when I searched it on google.
I have a Homebanc mortgage. I just got a call from my ins. co. stating that they haven’t received my homeowner ins. payment from my mortgage co. after 45 days. I contacted Homebanc and all their numbers and websites are disconnected.
Any news on this, or know what I should do? I’ve been sending my payments in to the same address, and never got a letter stating it was sold to another co., and the payments have been processed like normal. I’m thinking of not paying and seeing who contacts me.
Obviously he has an escrow account and has been making his payments. Unfortunately the insurance did not get paid as it should have. My advice to you would be to write a letter to the address that you are sending your payments to and ask that you be contacted to discuss your escrow account. If this is not successful then you will probably want to contact Countrywide Mortgage. My understanding is that Countrywide was assuming the servicing of Homebanc accounts. To add another twist, Bank of America is buying Countrywide so you may also contact Bank of America if Countrywide has no record of servicing your account. If none of these can provide you with the correct answer you may also contact your state department of banking and finance and ask for their guidance. You should have been notified that the servicing of your mortgage was being handled by a different provider. Unfortunately you were not.
The one thing I would recommend that you not do is avoid paying the payment to see who contacts you. Damaging your credit with a late payment is just not worth it. Sure it will take some time and phone calls to clear this up, but you need to know who is servicing your mortgage in case there is any other problem in the future.
