Builders and real estate agents never again would have to disappoint unqualified home buyers, thanks to a new referral network formed by a leading provider of downpayment assistance and a national non-profit credit counseling organization.

Under the partnership, builders and agents will send potential customers who have credit issues and lack the funds for a downpayment to the Path to Homeownership, a venture operated jointly by Profina Debt Solutions and the Nehemiah Corp.

Headquartered in Orlando, Profina, a community service organization offering debt management, credit counseling and financial education programs, will work with the would-be buyers to clear up their credit problems.

Once the client becomes eligible for financing, Nehemiah will work with those who don't have enough money to proceed. The Sacramento-based non-profit provides downpayment assistance to qualified buyers in the form of gifts which need not be paid back.

By offering a dual solution to the primary barriers preventing people from becoming owners, the partnership "will be opening the doors to financial freedom and enabling more families to experience the American Dream," said Nehemiah President Scott Syphax. Since its inception in 1994, Nehemiah has helped some 115,000 buyers.

About a dozen builders already have joined the referral network, which will be rolled out in several markets throughout the country over the coming months. The network also will be open to real estate companies and lenders who offer financing insured by the Federal Housing Administration.

"Identifying credit-qualified buyers is one of the biggest challenges that we face in our industry," said Paul Shoopman, president of the Dura Cos., an Indianapolis builder which has signed up for the service. "We have found that many potential home buyers, regardless of race and income level, suffer from some sort of credit issues which prevent them from becoming homeowners."

The idea for the network came from Paul Rosen, president of MI/Schottenstein, a multi-market builder based in Columbus, Ohio, who suggested to Nehemiah that a good use of its funds would be to offer a "solid counseling program" that customers could have confidence in.

"We've worked long and hard trying to find ways to assist our customers," said Rosen. "This is a great answer; it's better than trying to do it on our own."

MI/Schottenstein, which already has one customer enrolled in the new program, is a "very active user" of Nehemiah downpayment assistance, according to Rosen.

In 2001, 502 of the company's buyers used money from the non-profit as a source of their downpayments, resulting in sales of about $80 million. Through June of this year, 329 buyers have used Nehemiah to purchase $54 million worth of new homes. And 437 more Nehemiah buyers are "in the pipeline" that will produce some $70 million in sales.

Schottenstein builds about 4,000 houses a year in Florida, North Carolina, Virginia, Maryland, Indiana and its home state of Ohio.

Other national builders which have signed up for the referral network include Pulte Home Corp., Beazer, NVR, D.R. Horton and US Homes/Lennar. Also participating are Dominion Homes in Dublin, Ohio and Louisville, Ky., Trend Homes in Chandler, Ariz., Mulvaney Homes in Charlotte, N.C., and Torrey Homes in Greenville, S.C.

Would-be participants can determine if the network is available in their area by calling 800-894-1444.

Published: July 17, 2002

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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.