Clarification on October 1st DPA Deadline From H.R. 3221

Sacramento, CA — October 1, 2008
By: Nehemiah Corporation of America

What Happens On and After October 1st?

Nehemiah has confirmed with HUD/FHA that, contrary to information that has been circulating, the home sale/closing date generally is irrelevant when determining whether downpayment assistance may be provided. It is the credit/loan approval date that is relevant, as the law and HUD have made clear.

What is the precise definition of “credit approved” as described the housing bill (H.R. 3221)? If a loan is manually underwritten, the approval date is the day on which the underwriter signs the Mortgage Credit Analysis Worksheet (MCAW) or the FHA Loan Underwriting and Loan Transmittal (LT).

When is the last day I can request gift funds from Nehemiah? November 28, 2008 is the last day Nehemiah will fund DPA gifts (as credit approval, or a Rate Lock, obtained on September 30, 2008 would typically expire on this date).

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For additional information, please contact Shelley Mitchell, smitchell@nehemiahcorp.org, 916-231-1999.

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