Arizona Mortgage Team

Arizona Mortgage Rates. Refinance FHA, VA and Jumbo Mortgage Loans.

  • Loan Programs
    • FHA Loans
      • FHA 203k Loan
      • FHA Streamline Refinance
      • FHA Kiddie Condo Loan
    • VA Loans
    • USDA Loans
    • HomePath Loans
    • Interest Only Mortgage Loans
    • Refinancing
    • Reverse Mortgages
      • Reverse Mortgage Quote
  • Insurance
    • Arizona Car Insurance
    • Arizona Homeowner Insurance
    • Arizona Life Insurance
    • Arizona Renters Insurance
  • Press
  • Blog

1% Down Payment FHA Loan – AKA National Stabilization Program

July 13, 2009

I have heard from more than one local Realtor that many mortgage professionals are telling them that there is a new FHA Loan that only requires only a 1% down payment.

I have good news and bad news.

First the bad: FHA has not changed their guidelines recently, they still require a 3.5% down payment.

Now the good.

FREE money. Money that I am pretty sure many, many people out there can take advantage of right now – assuming that they are aware of the program.

The mortgage program that many of these Realtors have been asking me about is called the National Stabilization Program and is even better than a 1% down payment requirement – AND – when the NSP program is combined with an FHA loan, only 1% down payment is required.

We all know that the devil is in the details, so here is my best shot at describing them.

I attended a training class on the NSP program taught by the Arizona NSP director and I took as many notes as I could to help me remember what the program is all about.  Do you Follow Me On Twitter Yet?

NSP Twitter Stream All

National Stabilization Program Highlights:

  • If you own a residence, you must be leasing your primary residence at least 12 months before applying for the program.
  • You must use us a lender from the ADOH participating lender list.
  • You must attend and complete an eight‐hour Homebuyer Education Class provided by one of the ADOH participating homebuyer counseling agencies. (A list will be provided by your lender once you begin the process.)
  • The property you purchase must be your primary residence.
  • 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 can use any type of financing with the NSP program – including paying cash. That means you can still get up to 22% of the purchase price even if you pay cash for the house.
  • You must be approved and have your paperwork completed for the program prior to submitting an offer on a house.

National Stabilization Eligible Property Types:

  • Foreclosed properties only. A property is considered “foreclosed upon” at the point that the mortgage or tax foreclosure is complete.
  • One‐unit detached single family homes, condos and townhomes.
  • The property must be vacant at time of listing.

National Stabilization Program Purchase Price Limits:

NSP Purchase Price Limits

National Stabilization Program Income Limits:

In order to qualify for the program, you must have a gross income (the total income before taxes, health care costs, social security, etc.) of no more than 120 percent of the average median income for the county they want to purchase a foreclosed house in.

Income Limits For Maricopa County:

NSP Income Limits

National Stabilization Program: 1% Down Payment?

A minimum of 3 percent of the property purchase price is required as down payment. One percent must come from the borrower’s own funds. Two percent can come from any other approved source.

National Stabilization Program: FREE Money?

  1. Up to 22 percent of purchase price
  2. All loans are forgivable after a period of time based on the amount of the loan.
    * 5 years for assistance of $15,000 or less
    * 10 years for assistance of $15,001‐$40,000
    * 15 years for assistance of more than $40,000
  3. All loans are zero percent interest with no monthly payment.
  4. The balance of the loan is forgiven at the completion of the term.

My Take On The NSP Program

This is probably the most “real” program I have seen in years. There is money available, the steps to getting the money are fairly clear and there is plenty of housing inventory right now. If you are a Realtor, I am about 95% certain that you are probably currently working with someone who can take advantage of this program – and save tens of thousands of dollars when buying a home.

So if you think the 8000 tax credit is a good selling tool to help people get off the fence, wait until they hear about this pile of free money waiting for them.

Filed Under: Arizona Home Financing Options, Government, National Stabilization Program, Refinancing in Arizona Tagged With: 1% down payment, 1% FHA down payment loan, National Stabilization Program

Recent Items

  • How Does a VA Streamline Work?
  • Can you Use a Mortgage Assumption after a Divorce?
  • What are the Major USDA Streamline Guidelines?
  • How is the USDA Monthly Guarantee Fee Calculated?
  • How to Purchase USDA Foreclosed Homes?

Latest News

  • How Does a VA Streamline Work?
  • Can you Use a Mortgage Assumption after a Divorce?
  • What are the Major USDA Streamline Guidelines?
  • How is the USDA Monthly Guarantee Fee Calculated?
  • How to Purchase USDA Foreclosed Homes?

Search

IMPORTANT MORTGAGE DISCLOSURES:

When inquiring about a mortgage on this site, this is not a mortgage application. Upon the completion of your inquiry, we will work hard to match you with a lender who may assist you with a mortgage application and provide mortgage product eligibility requirements for your individual situation.

Any mortgage product that a lender may offer you will carry fees or costs including closing costs, origination points, and/or refinancing fees. In many instances, fees or costs can amount to several thousand dollars and can be due upon the origination of the mortgage credit product.

When applying for a mortgage credit product, lenders will commonly require you to provide a valid social security number and submit to a credit check . Consumers who do not have the minimum acceptable credit required by the lender are unlikely to be approved for mortgage refinancing.

Minimum credit ratings may vary according to lender and mortgage product. In the event that you do not qualify for a credit rating based on the required minimum credit rating, a lender may or may not introduce you to a credit counseling service or credit improvement company who may or may not be able to assist you with improving your credit for a fee.

Copyright © Mortgage.info is not a government agency or a lender. Not affiliated with HUD, FHA, VA, FNMA or GNMA. We work hard to match you with local lenders for the mortgage you inquire about. This is not an offer to lend and we are not affiliated with your current mortgage servicer.

Contact Us | Terms of Use | Privacy Policy

Buy Mortgage Leads

Mortgage.info

NMLS ID #1237615 | AZMB #0928735

8123 South Interport Blvd. Suite A, Englewood, CO 80112

CLICK TO SEE TODAY'S RATES

Contact Us