Neighborhood Stabilization Program – Rail Life Style

In case you haven’t heard, and most people haven’t, the Arizona Neighborhood Stabilization Program (NSP) provides up to 22% in purchase assistance from the Arizona Department of Housing for people purchasing a foreclosure property. Yep, free money – as long as you play by their rules. Given the large amount of foreclosure properties near light rail, many people interested in living near the light rail line* have an opportunity to take advantage of this program. Obviously not everyone will qualify. In fact, the home must be a foreclosure, the borrower must use the property as a primary residence (no investors), and you must meet specific income guidelines. Many other factors are to be considered, as well. My friend, Justin McHood helped with the following list of things to consider when deciding if the Neighborhood Stabilization Program is right for you. Neighborhood Stabilization Program Overview

• The home you purchase must be your primary residence and you must agree to live in the property for a period of time (5,10,15 years) based on how much grant money you receive.
• Prior to writing an offer on the home, you must attend and complete an eight hour Homebuyer Education Class provided by one of the ADOH participating homebuyer counseling agencies. (A list will be provided by your lender once you begin the process.)
• You must have a maximum debt?to?income ratio of 31/43.
• You must have two months PITI reserves.
• You can use any type of financing with the NSP program – including paying cash. That means you can still get up to 22% of the purchase price even if you pay cash for the house.
• You must be approved and have your paperwork completed for the program prior to submitting an offer on a house.

According to the “Your Way Home AZ” website, the statewide program assists homebuyers purchasing foreclosed homes in select areas, helps rehabilitate housing developments, and stabilizes neighborhoods. Yesterday I had the opportunity to meet Mr. Givens who is the Neighborhood Stabilization Program Coordinator for the Arizona Department of Housing. Mr. Givens said that the program is NOT a down payment assistance program and the borrower must have funds to close. “If you can’t stand on your own, you can’t get this loan.” The “stabilization” part has to do with keeping people in their homes for at least 5 years to help build community. Last night, I did a search of bank-owned homes for sale within 1/2 mile of our light rail system and found 68 properties with an average list price of less than $90,000. I have seen some of these homes, and they range from “pretty rough” to “pretty nice.” Yep, there really is something for just about anyone. If you are interested in purchasing a home near the light rail line, the Neighborhood Stabilization Program is definitely worth a look. * Please note: The NSP program is available for foreclosure properties all over the state, not just homes near the light rail line. Contact your favorite real estate agent or loan officer to help get the ball rolling.