If you are a local Realtor or someone who is thinking about buying a bank-owned home, you really can’t afford not to know about the Neighborhood Stabilization Program.
The federal Government gave about $120 million to this program and it is designed to help people who are buying a bank owned home live in the home for a period of time and in return, the government will give you money to do so.
How much money?
22% of the purchase price of the home.
Yes, you read that right – the Neighborhood Stabilization Program will give you 22% of the purchase price of your new home as long as it is currently owned by the bank no matter whether the house is a foreclosure near the light rail or in Buckeye or Tucson. And that is on top of the $8000 tax credit.
Some of the highlights of the Neighborhood Stabilization Program include:
- You must occupy the property as your primary residence.
- You must attend a Homebuyer Education Class prior to writing an offer for your home.
- You must have a maximum debt‐to‐income ratio of 31/43.
- You must be AUS approved eligible.
- You must have two months PITI reserves.
- You must be approved and have your paperwork completed for the program prior to submitting an offer on a house.
The NSP program is not a loan program – it is a grant program. This means that you can use any type of loan with the NSP program (FHA, VA, USDA, etc.) and still get a grant of 22% of the sales price of your home.
Sound too good to be true?
Call us anytime with questions.
{ 2 comments… read them below or add one }
I am a disabled person who has not owned a property for 3 years. I have a low credit score from a BK and previous foreclosure. Now I have a steady income from social security disability and I have no debt and no assets.
I want to buy a house with my fiance who also has steady income from a pension and social security disability and and a low credit score.
We believe we qualify for extra help because of our disability status. With the help of Grant monies and home buyer credit, we are ready to buy something very soon. Our combined income is 3,400 per month.
We want to get started very soon. thank you
Hi Jane,
It sounds like getting your approved will be difficult, but maybe not impossible.
You can email your contact info to me at:
justin.mchood@arizonamortgageteam.com
And I will have one of our loan officers contact you.
Thanks!