Up to $14,900 in assistance to buy a foreclosure with the NSP program
The Neighborhood Stabilization Program (NSP) is part of the Housing and Economic Recovery Act of 2008. If you are a first time home buyer, this program could give you as much as $14,900 in assistance to be applied towards your down payment, pre-paids and closing costs when you buy a foreclosed property.
The $14,900 assistance comes in the form of a 5-year deferred loan with zero interest. This loan may be forgiven at 20% per year for each full year you own and live in the home and as long as you remain current on your mortgage. To qualify, you must contribute $1,000 of your own funds. Some income limits are applicable with this program (please refer to (NC Bond income limits) and sales price 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 town homes qualify. Manufactured homes are not eligible. The NSP Program is a great program if you are planning a foreclosure and have limited funds for a down payment.