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Save Up To $2,000 a Year on Your Income Taxes

You May Qualify for $14,900 in Downpayment Assistance

Buying a Foreclosed Property?

If you are purchasing a foreclosed property, you may be eligible for down payment and closing cost assistance. The 5-year, 0% percent interest deferred loans are up to $14,900 for eligible properties and borrowers. The loans may be forgiven at 20 percent per year for each full year you own and live in the property. At the end of 60 months (or at the time of sale, refinance, or non-owner occupancy), you must be current on the mortgage to qualify for forgiveness of the loan.

The loan is to be used in conjunction with the North Carolina Housing Finance Agency’s FirstHome Mortgage. The funds are from the federal Neighborhood Stabilization Program (NSP), which was authorized by the Housing and Economic Recovery Act of 2008 and developed by the U.S. Department of Housing and Urban Development.  The N.C. Department of Commerce Division of Community Assistance is administering the $48.85 million that was provided to the state and has awarded the funds to 20 local governments, nonprofits and other organizations.  The N.C. Housing Finance Agency received $4.2 million in NSP funds.

NSP funds are intended to be used to stabilize neighborhoods that have been significantly impacted by the foreclosure crisis.  All NSP activities must benefit low, moderate or middle-income individuals and families.

Am I eligible?

To qualify for the NSP loan, you must be a first-time home buyer according to our FirstHome Mortgage program guidelines. You cannot have owned a home and occupied it as your principal residence in the past three years, although you may qualify if you are eligible for a special one-time Veteran’s exception.

You also must meet certain income limits. Maximum qualifying income limits vary by county and household size and range from $41,900 for a 1-person household to $86,000 for a 4-person household.  All borrowers receiving NSP funds must obtain 8 hours of classroom home buyer counseling from a HUD-approved housing counselor.

What properties are eligible?

Sales prices cannot exceed $210,000. The homes must be foreclosed and for sale by a bank, bank holding company, government agency, or authorized REO designated entity. (Our Agency REOs are not eligible). In addition, all properties must be purchased at a minimum one percent discount below the appraised value, with the appraisal dated within 60 days of the sales contract.

Only single-family homes, condominiums, and townhomes qualify. Manufactured homes are not eligible. Properties must be built after 1978 to qualify based on federal lead-based paint regulations.

All homes must have a home inspection completed by a licensed NC home inspector. The property must have no structural repairs or deferred maintenance issues, per the home inspection. All repairs must be made prior to loan closing. The Agency cannot escrow or advance NSP funds.

Your home also must be located in one of the 23 counties served by the NSP grant: Alamance, Brunswick, Buncombe, Cabarrus, Catawba, Cumberland, Dare, Davidson, Durham, Edgecombe, Forsyth, Gaston, Guilford, Iredell, Johnston, Mecklenburg, New Hanover, Pitt, Randolph, Rowan, Union, Vance, and Wake. You must occupy the home within 60 days of closing.

How do I begin?

The NSP program is now available. Since the NSP loan must be used in conjunction with the Agency’s FirstHome Mortgage, you must first determine if you qualify for the mortgage. Contact one of the Agency’s participating lenders in your area to learn how a FirstHome Mortgage and NSP loan could help you purchase a foreclosure property.

For more information about the NSP downpayment assistance program, contact Rob Rusczak at rob@nchfa.com or call 919-875-3777.