Designated Nehemiah Specialist Training

Helping People Become Homeowners!

Our Promise to You…

Nehemiah Corporation of America’s unsurpassed reputation as the nation’s most reliable and

respected DPA provider is reaffirmed each day through our commitment to rigorous regulatory

compliance and streamlined processing performance in service to YOU and

your valued customers.

Business as Usual at Nehemiah

• HUD Rule is set aside– On March 3, 2008, Judge Lawrence K. Karlton of the United

States District Court for the Eastern District of California upheld Nehemiah’s motion for summary judgment.

• FHA Modernization Bills– Versions Passed in House and Senate

– Reconciliation likely sometime in 2008

– Senate Rescue Plan includes language eliminating Downpayment Assistance Programs

• HUD Proposed Rule Additional Public Comment Period– Submit comments: http://www.regulations.gov/search/index.jsp– Comment deadline is August 15, 2008

Presentation Overview

• Opportunity and need for the downpayment assistance industry

• Knowledge and skills to confidently execute Nehemiah assisted transactions TODAY

– Competent

– Capable

– Confident

• Marketing resources to help you reach new customers

• Add incremental production

The Nehemiah Program®

• Ten years of helping people become homeowners

– Nation’s largest and most trusted DAP

– Created the downpayment assistance industry

– Over 275,000 individuals and families have become homeowners

– Over $1 billion provided in gift funds

• $60 million generated in grants and loans for affordable housing initiatives nationwide

• Buyers utilizing DPA represent over 30% of all FHA insured purchase money mortgages (37.41% February 2008)

• Since 1998, The Nehemiah Program has helped generate over $1 billion in real estate commissions

That’s $ 1 billion

in gifts

30+% More Buyers NOW

A True Gift to the Homebuyer

• Just like Mom and Dad, only better

• No repayment required

• Nationally approved “gift source”

• No silent second mortgage

• Use for any acquisition cost

• Up to 6% of the sales price

Buyer Benefits

• Homeownership…NOW

• 0% total investment

• Gain immediate equity

• Mortgage interest deduction

• No income or asset restrictions

• First step to wealth accumulation

Homebuyer Requirements

• Qualify for an appropriate loan product which accepts a “gift” for downpayment from a nonprofit

– Example: FHA loan program

• Purchase a home from a builder/seller who agrees to participate with the terms of The Nehemiah Program

• Prepare for the responsibilities of borrowing and homeownership

• No income, asset or geographic restrictions

• May qualify with non-occupant co-borrower

Property Criteria

• Purchased property must be owner-occupied:

– Single Family: New or Resale Home

– Duplex, triplex or fourplex (2-4 Family)

– Condominium

– Townhome

• No geographic restrictions

• Must meet minimum FHA requirements

Available Loan Products

• FHA - FRMs, ARMs & (203K) (Rehab)

– If FHA will insure it, we will gift on it!

• Any loan product that recognizes Nehemiah’s gift as an acceptable source of downpayment funds

• Most gifts are with FHA-Insured Loans

• FHA Maximum Mortgage Limits are available at www.getdownpayment.com/lenders

• To determine maximum FHA purchase price, divide the Maximum Mortgage Limit by 97.75%

FHA / Nehemiah Review

• Buyer must have 3% of Purchase Price invested

– None of that 3% can come from seller

• Nehemiah can provide up to 6% Gift Funds

• Seller can contribute up to 6% in “seller’s concessions toward buyer’s closing costs”

– None of that 6% can be used toward buyer’s downpayment

• The total of Nehemiah Funds and seller’s concessions can be up to 12%

– The total of the two is deducted from the seller’s net

Homeownership Education

• Nehemiah’s online Homeownership Education Course is available FREE to all gift candidates

– Over 1,000 enrollees a month

– English and Spanish

• We recommend that first time buyers visit the site and review the course located at www.getdownpayment.com/buyers

• Homeownership counseling is NOT required to receive Nehemiah gift funds

Presenting The Nehemiah Program®

• To Homebuyers:

– Reasonable credit history

– How much down?

– How much a month?

– Must be prepared to make offer for the greatest potential value of the property

Seller Benefits

• Additional marketing tool

• Dramatically larger pool of buyers

• Generally sell at highest market value

• Often net the same if not more

• Less marketing time

• Fewer contingencies

• Less inconvenience

Seller Requirements

• Sign the Nehemiah Participating Home Agreement

– This form acknowledges that the seller has made their home available for purchase by a buyer receiving Nehemiah gift funds

• Make Nehemiah contribution

– After the close of sale, (from the proceeds of sale) the seller contributes an amount equal to the homebuyer’s gift amount

• Note: Nehemiah contributions and fees are separate from the 6% allowable seller concessions under FHA loan guidelines

• Pay Nehemiah processing fee

– Nehemiah’s processing fee can be paid by the seller, buyer or lender

– It is typically paid by the seller

• New Construction and Resale

Recommended Contract Language

Seller is aware that the buyer is receiving downpayment assistance through

The Nehemiah Program® as set forth in the related

Participating Home Agreement.

Note: This language is contained at the bottom of the Seller’s Participating Home Agreement

Presenting The Nehemiah Program®

• To Sellers:

– How much do I walk away with? (Seller’s net)

• Most sellers will not accept anything less than the full asking price when selling to a Nehemiah buyer

– When do I walk away with it? (Closing date)

– Evidence of buyer’s ability to close

Nehemiah Estimated Seller’s Net Sheet Calculator

• Generate a seller's net sheet comparison to show expected net proceeds of a transaction with and without The Nehemiah Program

• Demonstrate the benefits of selling a home using The Nehemiah Program

– Increased pool of buyers

– Less time on market

– Desired net proceeds

Seller’s Net Sheet Calculator

Net Sheet Calculator Example

Ratio of Home Activity to Time on Market

Don’t Reduce…Introduce!

Typical Price Reduction

Original List Price $150,000

Reduced Price/Offer (-5%) $142,500

Negotiated Discount (-5%) - $7,125

Seller’s Net Before Comm. $135,375

Don’t Reduce…Introduce!

Nehemiah Program Alternative

Original List Price $150,000

Selling Price $150,000

3% Gift + $599.00 = - $5,099

3% Seller’s Concessions - $4,500

Seller’s Net Before Comm. $140,401

Seller’s Net is $5,026 Higher

Getting Started Today: Real Estate Professionals

• Educate buyers and sellers on The Nehemiah Program and its benefits

• Market the program to buyers, sellers and business development contacts

• Use The Nehemiah Program to secure more listings

• Advertise your homes to an increased pool of buyers utilizing the many marketing resources provided by Nehemiah

• Conduct new homebuyer seminars

Getting Started Today:Lending Professionals

• Register for our Online Processing System (OPS) Paperless at www.getdownpayment.com

• Verify closing office is registered with Nehemiah

• Request the gift funds utilizing OPS

• Obtain signature from homebuyer(s) on Nehemiah Gift Letter and ensure seller(s) signature is on Participating Home Agreement

• Program forms available at www.getdownpayment.com/lenders

• Deliver completed forms to closing office with loan file

• Market The Nehemiah Program to real estate associates, builders and consumers

Role of the Closing Office

• Register closing offices by faxing a completed registration form to Customer Service at (866) 728-7708– Requests are processed within 4 hours (within normal business hours)

– Closing Office Registration Form is available at www.getdownpayment.com/lenders

– Closing offices MUST be registered with Nehemiah before the gift funds transaction can close

• This is a one-time step!

• Receive gift funds wire from Nehemiah prior to closing

• Ensure appropriate signatures are on forms at closing

• Complete HUD-1 Settlement Statement and withhold the Nehemiah seller contribution and processing fee from the sellers’ proceeds

• Wire processing fee and seller contribution to Nehemiah immediately AFTER the transaction is complete

Marketing Resources

• Consumer Brochure

• Sign Rider

• Yard Sign

• Materials to Download

– Homebuyer Fliers

– Seller Fliers

– Spanish Fliers

– Postcards

• Net Sheet Calculator

Valued Added Services & Features of The Nehemiah Program

• Nehemiah Listing System® (NLS)

• Nehemiah New Home Finder

• Link to Us

• Pre- and Post-Homeownership Education Course

• Pathways: Responsible Homeownership

• Risk-Free Gift Fund Processing and Delivery

Why Nehemiah?

• Reputation

• Reliability

• Regulatory Compliance

• Respected

• Relationship-focused

• Best value

Best Value

• Providing safety and security at competitive prices makes Nehemiah the best value in the industry

Can you afford to trust your business to anyone else?

Satisfaction Guarantee

• 200% Satisfaction Guaranteed

– If you are not completely satisfied with your Nehemiah gift fund transaction, the next two processing fees are “on the house.”

Designated Nehemiah Specialist

• Congratulations! Your training is complete

• Your certificate will be mailed to you

• Thank you for your support of The Nehemiah Program

Thank You For Attending

We look forward to partnering with YOU and Helping People Become Homeowners!

www.getdownpayment.com

877-634-3642