The HUD $100 down program is the new wave of the market for those looking to purchase a home. Although this down payment assistance program has been around for some time, very few people are aware of the benefits and how it works. With the Department of Housing and Urban Development soon to release a record number of foreclosures, now would be the perfect time purchase a foreclosure for only $100 down.
HUD homes are priced at fair market value for their location based on appraisal. HUD homes are typically less expensive than regular houses, so buyers can get more space for less money. Teachers and police officers are given a 50% discount on HUD homes. Investors often purchase HUD homes to fix up themselves and sell at a profit. The buying process on a HUD home is different from the usual residential real estate transaction. HUD foreclosures are sold using a bidding process. Before submitting a bid, buyers must be pre-approved for financing. You must make application and have a conditional loan commitment from a qualified lender. To apply for financing or to find out more information about the HUD $100 down program, feel free to call us at 704-965-3319 or you can go to www.trenamiller.com to apply online. We have access to a variety of resources to assist clients with home purchasing and financing including home buyer education, down payment assistance and credit counseling services.
The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the goal of the program is being realized. NSP1, a term that references the NSP funds authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008, provides grants to all states and selected local governments on a formula basis. NSP2, a term that references the NSP funds authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, provides grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis. The Recovery Act also authorized HUD to establish NSP-TA, a $50 million allocation made available to national and local technical assistance providers to support NSP grantees.
NSP1
Under NSP1, HUD allocated $3.92 billion on a formula basis to 309 grantees including 55 states and territories and 254 selected local governments. The program was designed to stabilize communities across America hardest hit by foreclosures. Grant agreements for these funds have already been signed.
NSP2
Under NSP2, HUD allocated $1.93 billion on a competitive basis to states, local governments, and non profit organizations. The program objectives and eligible uses did not change under the Recovery Act, but the allocation process and some regulations on the funds have changed. The deadline to apply for NSP2 funding is July 17, 2009.
NSP-TA
Under NSP-TA, HUD allocated $50 million on a competitive basis to TA providers supporting HUD’s community development program grantees and subrecipients. The NSP-TA program is open to both national and local TA providers. Applications are currently being reviewed, but new applications are no longer being accepted.
Nature of Program
NSP is a component of the Community Development Block Grant (CDBG). The CDBG regulatory structure is the platform used to implement NSP and the HOME program provides a safe harbor for NSP affordability requirements.
NSP grantees develop their own programs and funding priorities. However, NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income. Activities may not qualify under NSP using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives.
Eligible Uses
NSP funds may be used for activities which include, but are not limited to:
- Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
- Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
- Establish land banks for foreclosed homes;
- Demolish blighted structures;
- Redevelop demolished or vacant properties
Homebuyer Assistance
Homebuyers cannot receive assistance directly from HUD. NSP funds can be used to help homebuyers purchase homes, but they must contact an NSP grantee for application details. NSP operates on a national scale, but participation requirements may differ from one state or city to another. For information on how you may purchase a home with NSP assistance please contact an NSP grantee in your area.
The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and homeownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA in Charlotte has made the dream of homeownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or refinance a predatory loan with far better terms than those provided even in the prime market.
With the Naca Program, everyone gets the same incredible terms, including the below-market interest rate, regardless of their credit score or other factors. NACA also provides free, comprehensive housing services. NACA counsels Members into the extraordinary NACA mortgage using character-based lending criteria that takes each Member’s circumstances into account to determine whether they are ready for homeownership and what they can afford.
To find out more information on the NACA program, go to NACA Program Information and Guidelines
