NSP Program Overview
As part of the Housing and Economic Recovery Act (HERA), passed by Congress in July 2008, $3.92 billion was provided to communities hardest hit by residential foreclosures and mortgage delinquencies. The city of Phoenix received $39,478,000 in Neighborhood Stabilization Program (NSP) funds to help families purchase foreclosed homes at a discount, which in turn helps stabilize neighborhoods. NSP Homeownership Assistance funds are for down payment and closing cost assistance for eligible homebuyers.
Homeownership Assistance Description
The NSP Homeownership Assistance Program provides a $15,000 loan for down payment and closing cost assistance for buyers of foreclosed homes anywhere in the city of Phoenix. The full amount of the loan is paid back to the city when the homebuyer sells the home or refinances. The program targets foreclosed single family homes, townhouses and condominiums (condo conversions are not eligible) that meet HUD Housing Quality Standards (HQS). The Homeownership Assistance program is for down payment and closing cost assistance only and cannot be used to fund rehabilitation activities.
Eligible HomebuyerEligible families can earn up to 120 percent of area median income (AMI), which is based on family size. In determining a family’s income, all wages and salaries of all family members over age 18 are considered as well as other sources of income.
