Does Nehemiah program cover the entire closing cost?

Question

Were qualified for the Nehemiah program. We found a home and just found out that they accepted our offer of 135,000. Our agent notified us today that the title company is only willing to pay 3% and is telling us to come up with 1%. To my understanding Nehemiah covers the closing cost so why would we have to pay anything? The agent said the title company does not like to deal with Nehemiah. I am so confused.

Answer 1

You are wrong.

First Nehemiah is a 3rd party program that ALLOWS the seller to pay your downpayment and closing costs.  Nehemiah is a pass through program.  

The seller "gives" Nehemiah 4 percent and Nehemiah then sends the title 3 percent downpayment.  Nehemiah keeps 1 percent to cover their fee.

Nehemiah DOES NOT give the loan.  The loan is a FHA loan which has a 3 percent downpayment requirement.  WHich the seller has paid for you through the Nehemiah program.

In regards to closing, the seller has to also agree to pay your closing.  

We have used Nehemiah and (Genesis, which only charges a $300 fee).  We have paid the closing costs (up to the 3 percent FHA limit), but we have increased the price of the house by 3 or 4 percent to cover the downpayment/Nehemiah.

Answer 2

.   It is bad for you to be confused at this point in the transaction. Your agent is not doing an excellent job.  Her number one job is to look out for your interests.  You shouldn't have to remind her of that.

You are getting an FHA loan.  They need 3% cash down payment.  You don't have that.  So the seller is crediting 3% to Nehemiah and that money is then credited back to you as your down payment.  So Nehemiah only cares about 3%.   You also need some money to cover your first mortgage payment,  1 year fire insurance, 1/2 year property tax.   That money is coming from the seller to you, but only if you got the seller to agree to do so.  The title company pays nothing from their own money.  They receive money from the seller and you.  

YOu needed to have asked the seller to pay those moneys for you , if you don't have the money.  That should have been done by your agent.  I know what you intended.  Why wouldn't your agent know that, too.