Southern Oregon Home Buyers - Neighborhood Stabilization Funds Coming Soon To Jackson County Oregon!

By
Mortgage and Lending with Karen Pierce | Mortgage Loan Originator NMLS#223305 |360 Mortgage Group LLC NMLS #155922 Austin Texas NMLS 223305

Foreclosure vs housing stimulus Neighborhood Stabilization Words ... and reality by ghb624 photo courtesy of flickr.comWhat 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:

       Buying foreclosure home to fix up and live in? our house.. before & after by TooPo2GoPro photo courtesy of flickr.com      Buying foreclosure home to fix up and live in?  before and after: hallway by : guiniveve photo courtesy of flickr.com 

  • 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

Posted by

Karen Cooper Southern Oregon|California Mortgage ConsultantKaren Pierce - Mortgage Loan Originator

               NMLS #223305

AL, AZ, CA, FL, GA, IN, IA, KY, MD, OR, TN, TX, VA, WA, WI

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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Hey!  I'm like a little kid, happy to be first in line.  This is a useful post, Karen!

Mike in Tucson

Apr 29, 2009 12:04 AM #1
Rainmaker
334,338
Karen Cooper
Karen Pierce | Mortgage Loan Originator NMLS#223305 |360 Mortgage Group LLC NMLS #155922 Austin Texas - Austin, TX
Professional Mortgage Specialist

Hi Mike! TGIF! Good to see you, and I thank you for stopping by.

May 01, 2009 02:37 PM #2
Anonymous
Kevin Keating

Hi Karen:

I'm sorry to say I just locked in a loan at what I thought is a good rate - 5% 1pt. I had borrowed money from a friend to buy the house at auction. I'm trying to finance 80% on a first and get a second for the other 20% if I can. Anyway, should I tell my broker about this program or can I apply by myself?? Thanks for your post!

Kevin in Medford

Jul 03, 2009 12:28 PM #3
Rainmaker
334,338
Karen Cooper
Karen Pierce | Mortgage Loan Originator NMLS#223305 |360 Mortgage Group LLC NMLS #155922 Austin Texas - Austin, TX
Professional Mortgage Specialist

Hi Kevin - The days of the 80/20 financing programs are long gone. The Neighborhood Stabilization Homeownership Program is a purchase money loan designed to help clear out the inventory of foreclosure. If I'm understanding your scenario correctly, you have already closed (or are about to). Unfortunately, getting the 20% after closing on your purchase will not work. 

Jul 08, 2009 12:35 PM #4
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Karen,

I'm back to say that you "stimulated" me to dig further, and Arizona has already implemented its training for our State's funds.  I took the training two days ago, and wrote a post (featured!) about it last night.  Come on over!

Mike in Tucson

Jul 25, 2009 12:34 AM #5
Rainmaker
334,338
Karen Cooper
Karen Pierce | Mortgage Loan Originator NMLS#223305 |360 Mortgage Group LLC NMLS #155922 Austin Texas - Austin, TX
Professional Mortgage Specialist

Hi Mike - That's great news! Congratulations! I'm on my way over...

Jul 26, 2009 12:00 PM #6
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