One of the least talked about programs that is available to help people purchase a home in Oregon is the Neighborhood Stabilization Program (NSP). Because I want people to know the programs that are out there, I have spent a lot of time on the First Time Home Buyer Tax Credit. This is because it helps people that have bought their first home make some fix-its happen and gives them a cushion against emergencies. So, I am surprised when I find out that a particular program designed to help the housing industry is not played up as much as I feel it should be. So, here I am shouting from the rooftops!!!
This program is a part of the Economic Stimulus Plan passed by Congress several months ago, but is just now being implemented. Through NSP, Dept. of Housing and Urban Development funds, are available to qualified home buyers up to $50,000. The loan requires no monthly payments and charges no interest. These proceeds can be used for down payment and towards paying closing costs when purchasing bank owned properties in eligible areas throughout Oregon and the US. Each municipality, like Eugene and Springfield, that are managing their share of the funds, may make their own specifics. In particular, the City of Eugene will allow the loan up to $50,000 and can finance some repairs, while the City of Springfield has limited their loan amount to $35,000 and no repairs can be financed.
Currently the state of Oregon has been allocated over $16,000,000, to be used towards the NSP. The NSP program was designed to make funds available to those who may need assistance in buying a foreclosed property. The idea being, the more households that can afford to buy a home, demand to purchase these homes goes up, soaking up the glut of bank owned properties and stabilizing the housing market. Here are some of the key features and benefits of the program.
Key Features:
- Up to $50,000 in assistance to purchase bank owned properties in target areas throughout Oregon and the United States (Check this link to determine area eligibility.)
- Fewer income restrictions than other community lending programs
- Owner occupied purchases only
- Not limited to only 1st time buyers
- Minimum down is 1/2 of the required down payment required by the first mortgage provider
Benefits:
- Afford more home with your money
- Funds can be used for: down payment, closing costs, improvements and rehab
- Can still qualify for the IRS tax credit
There are a number of requirements with the program, including income, credit, education and assets. If you want to find out if this program will work for you, call me today and let’s see if we can get it done, 541-342-7576/541-221-3455 cell or e-mail.
