What if you could have up to $50,000 to bring to the table when purchasing your Southern Oregon home? Would this help you to buy a home? Are you looking at foreclosure homes, and are willing to deal with handling necessary repairs to the home you purchase through your transaction and possibly share some of the appreciation you may gain? Is your income less than 120% of the HUD area median income for your area? Frustrated by the long delays and/or unfruitful results of negotiating on "short sale" homes - homes where the seller owes more on their existing loans than their home is worth in today's market?

There was quite a bit of stimulus included within the 2008 Housing and Economic Recovery Act. One of the items within this bill is the Neighborhood Stabilization Program Funds. Oregon Housing and Community Services, the agency that will be administering the Neighborhood Stabilization program for the State of Oregon, shows the funding designated for this program must:

• establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers;
• purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;
• establish land banks for homes that have been foreclosed upon; and
• demolish blighted structures

 
The statute also provides direction to the state to give priority emphasis in targeting the
funds  to "those metropolitan areas, metropolitan cities, urban areas, rural areas, low and
moderate-income areas, and other areas with the greatest need, including those:

• with the greatest percentage of home foreclosures;
• with the highest percentage of homes financed by a subprime mortgage related loan; and
• identified by the State or unit of general local government as likely to face a significant rise

Some guidelines have been put forth, such as:

• The maximum NSP investment per homebuyer cannot exceed the lesser of:
• $50,000 or
• the difference between the total cost (acquisition and modest rehabilitation) and amount of a mortgage that can be obtained by buyer. Families within the upper limit of the targeted population 81-120% AMI (Area Median Income) are the primary target for this activity. Due to the cost of housing in Oregon, few 50% or below area median income families will qualify for this activity.
  
• Funds will be provided in the form of a soft second loan. Interest on the loan will be zero percent. Repayment of the loan will be deferred until refinance or transfer of the title.
  
• A share of the appreciation will be due at transfer of title. On a case by case basis, OHCS may provide exceptions to repayment at time of transfer of title. All repayments are due to OHCS. OHCS will use program income for other eligible activities as outlined in the NSP regulations.

I'm still trying to confirm final guidelines and timelines with the State and local Agencies that will be administering and distributing these funds (should have this by early-mid May as these proposed final guidelines are being reviewed by the State's lecal counsel), but I have a pocket full of names of people who are ready, willing - and will become able to buy with these assistance programs. Are YOU ready? Home buyers - call me at (541)608-6003 or e-mail me for more details, and don't wait - there isn't a lot of $$$ to go around, and at up to $50,000 a transaction, it will very likely go fast!

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com