City of Medford Oregon / Neighborhood Resources / Housing / Homebuyer Assistance Program / Neighborhood Stabilization Program
Neighborhood Stabilization Program
Neighborhood Stabilization Program 1 (NSP1)
Program and Process
The allocated funds are intended to return foreclosed, abandoned or blighted properties to the market within areas of greatest need in order to stabilize neighborhoods. The funds must benefit individuals and households with incomes at 120% of area median income (AMI) and below. At least 25% or $114,814 must be used to serve households at 50% or below AMI. The proposed activities include homeownership assistance and acquisition and rehabilitation of foreclosed properties.
THE PROGRAM
- The type of loan is a second mortgage subordinated to the first mortgage. It is a shared appreciation loan and pays up to $50,000 in assistance for downpayment, closing costs, pre-paids and first mortgage reduction.
- The maximum debt-to-income ratio cannot exceed 45%. Total household income must not exceed 120% of median income for Jackson County.
1 person $46,550
2 person $53,200
3 person $59,850
4 person $66,500
5 person $71,800
6 person $77,100
7 person $82,450
8 person $87,750
- Eligible properties include foreclosed upon single family residences, condominiums and townhomes and FHA approved manufactured homes. Manufactured homes must be de-titled and permanent affixed to real property. Foreclosed upon refers to a property that under state or local law, the mortgage or tax foreclosure is complete, title for the property has been transferred from the former homeowner.
- A foreclosed upon home or residential property shall be rehabilitated to the extent necessary to assure safety, quality, and habitability. Upon inspection, the dwelling unit must be HUD’s Housing Quality Standards (HQS). NSP funding can also be used for rehabilitation of the unit.
THE PROCESS
- The potential homebuyer client is required to take a HUD Certified Homebuyer Education class. The next two classes are:
- The ABCs of Homebuying, sponsored by the Southern Oregon Housing Resource Center (SOHRC), Saturday, August 22,2009, 9:00 a.m. to 4:00 p.m., RCC Riverside Campus. Pre-registration with RCC is required. Contact (541) 245-7501 for more information or to preregister. Or contact SOHRC at (541)774-4329. *Cost - $35.00, partners of tuition paying students may register and attend at no cost.
- Realizing the American Dream, sponsored by SOFCU HUD Counseling Center, Saturday , September 12, 2009, 9:00 a.m. to 5:00 p.m., SOFCU Community Credit Union,1380 Biddle Road, Suite A, Medford. Contact Maggie Burrows (541) 479-2601 Ext. 2504. * No cost
- The client needs to be pre-qualified by a lender.
- The lender will then contact Melodee Sewell, Housing Specialist, SOHRC at (541)774-4329 to complete the paperwork required.
- The funding is sent directly from the State of Oregon to the client’s escrow account.
- If rehabilitation work needs to be completed before closing, the funds will be held in the escrow account.
For the Lender or Realtor:
Go to the Oregon Housing and Community Services Website
http://www.oregon.gov/OHCS/SFF_Neighborhood_Stabilization_NSP_Oregon_Program.shtml
· Go to Lender Resources and review underwriting guidelines. This is Activity #1.
· Go to Fund Reservation and complete the packet, obtaining at least the required documents. Fax or email this to Southern Oregon Housing Resource Center's Melodee Sewell.. (Follow-up with all other documents as you receive them in a timely manner). Melodee will need the hard copies of these documents.
· As the administrator of this program, Melodee will need to have you complete the City of Medford NSP application attachment as well and fax or email that to her.
· Go to NSP Target Block groups and make sure property is within the City of Medford AND within the Target Block groups.
NSP1 Bridge Notice Issued
The long-awaited bridge notice to the first round of the Neighborhood Stabilization Program (NSP1) was released by HUD on Friday, June 12. The notice makes several regulatory changes to the program. The notice changes the purchase discount requirement from 5% per property to 1% per property and scraps the 15% overall discount entirely.
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