Prince George's County NEIGHBORHOOD STABILIZATION PROGRAM (NSP)Down Payment Closing Cost Assistance Program
Program Fact Sheet What is the program about? How Could it Benefit You?
"Down Payment on Your Dream" assistance is in the formof deferred loans. There are several scenarios for the "DownPayment on Your Dream" loans:
Down payment and closing costs assistance to purchase a vacant foreclosed home.
The lesser of 3.5% of the purchase price or $15,000to purchase a vacant foreclosed property in one of33 eligible zip codes. 20607, 20608, 20705, 20710, 20715, 20720, 20721, 20613, 20722, 20623, 20735, 20740, 20769, 20770, 20781, 20782, 20784, 20707, 20712, 20745, 20737
The lesser of 7% of the purchase price or $20,000to purchase a vacant foreclosed property in one of12 targeted zip codes. DPCCA Target Areas are defined as:· Bowie (20716)· Capitol Heights (20743)· District Heights (20747)· Fort Washington (20744)· Hyattsville (20783, 20785)· Lanham (20706)· Laurel (20708)· Temple Hills (20748)· Suitland (20746)· Upper Marlboro (20772, 20774)
The lesser of 7% of the purchase price or $20,000to purchase a vacant foreclosed property in one of33 eligible zip codes as workforce housing. Workforcehousing is defined as foreclosed upon propertieslocated in one of 33 zip codes, purchased by teachers,police officers, nurses, firefighters, OR employeespurchasing a home within a 3 mile radius of placeof employment.
Who can participate?
First time home buyers only or cannot have owned a home anywhere in the last three years.
A household with income at or below 120% of the area median purchasing a vacant foreclosed property in eligible zip code.
What are the Steps? CALL The Godfrey Realty Group- Angel S. Brown 240-737-5052
1. I can identify and provide you with a list vacant foreclosedproperties in eligible areas.
2. I can provide you with an NSP approved lending Professional to get you pre-approved.
3. Attend an 8-hour housing counseling course providedby a HUD Certified Housing Counseling Agency.
4. We will work together to help you find a vacant Foreclosed Home of your Choice! 5. Submit Contract to lender that has been accepted by the bank.
7. Settle on your NEW HOME!!!
Workforce HousingWorkforce housing is defined as homes purchased by teachers, police officers, nurses, firefighters, and employees working within a 3 mile radius of place of employment.
LOAN TO VALUE REQUIREMENTThe total of the first mortgage loan plus the DPCCA loan cannot exceed 105% of the appraised value of the home to be purchased.
MAXIMUM LOAN AMOUNTThe DPCCA loan cannot exceed the lesser of 7% of purchase price, or $20,000 for the purchase of a foreclosed home (bank owned) in a Neighborhood Stabilization Program Target Area OR the purchase of a home for workforce housing. The DPCCA loancannot exceed the lesser of 3.5% of purchase price, or $15,000 for the purchase of a foreclosed home (bank owned) in a Neighborhood Stabilization Program Non- Target Area.
MAXIMUM LOAN TERMThe DPCCA affordability loan term is 10 years.
INTEREST RATEThe interest rate will be 0%.
REPAYMENT REQUIREMENTS1. The DPCCA loan will be a deferred payment loan, secured on the property as asecond trust, with the balance due determined by length of time the purchasersremain in the home.
2. The amount of the DPCCA due or forgiven is based on the following:If the Purchaser Remains in their home for
(As % of Total DPCCA Received)0-3 years all funds received will need to be repaid at 100%3-6 years funds received will need to be repaid at 50%6-9 years funds received will need to be repaid at 30%10+ years all funds received will need to be repaid at 0%