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.