Neighborhood Stabilization Program (NSP) Guidelines and Information

If you are a first-time home buyer intrested in purchasing foreclosed property, you may qualify for a five-year, deferred loan up to $14,900 at zero interest called the NSP Housing Program. This new NC mortgage loan product is forgiven at 20% per year for each full year you own and live in the home, as long as you remain current on your mortgage.

This new progam for first time homebuyers is provided under the federal Neighborhood Stabilization Program (NSP), authorized in the Housing and Economic Recovery Act of 2008. Loans are offered by the N.C. Housing Finance Agency and used with the Agency’s 30-year, fixed-rate FirstHome Mortgage.

Am I eligible?

To qualify for NSP, you must

• be a first-time home buyer (or not have owned a home in the past three years).

• meet certain income limits.

• obtain eight hours of HUD-approved home buyer counseling.

• contribute $1,000 from your own funds.

 What properties are eligible?

Sales prices cannot exceed $210,000. The homes must be foreclosed properties, built after 1978, and purchased at a 1% discount to the current appraised value. Only single-family homes, condominiums, and townhomes qualify. Manufactured homes are not eligible for the NSP Program.

Your home must be in one of the 23 counties served by the NSP Program which includes: 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.

How do I begin?

You can apply online or fill out the form below for more information.