Neighborhood Stabilization Program (NSP)

Terms and Minimum Requirements - Revised as of 2/10/10

Funds can be used for the acquisition and/or rehabilitation of bank owned properties. Individuals and families earning 120% of median family income may be eligible. If you think you may qualify, prior to submitting an application you must be eligible for conventional financing and have an executed sales agreement. These documents, along with an application, will need to be submitted with the City application.

Loan Terms
Interest Rate:		0% interest
Loan Amount Per Unit:		$50,000 maximum
Term:		Deferred payment
Borrower Contribution		Borrower must contribute at least 50% of the first mortgage lender’s required down payment requirement. Borrower required contribution for the down payment must never be less than $1,000 or 1% of the purchase price, whichever is greater.
Repayment:		Loan is due in full at sale, lease, refinance, or if there is any change to title.
Purchase Price		Must be 1% below appraised value.

Additional terms may apply. Terms subject to change.

Eligible Borrower

Liquid assets not to exceed $15,000
Obtain approval from a primary lending institution for the purchase of the home.
Annual household gross income cannot exceed 120% of median family income for Salem and Keizer.
Provide certification of completion of ABC of Homebuying or Realizing the American Dream.

Eligible Homes

Located within the city limits of Salem or Keizer.
Qualifying structures include: single-family homes, condominiums, or manufactured homes that are placed upon a permanent foundation.
Property must be in a decent, safe, sanitary condition and meet local code.
The home must be bank owned.
The home must be in a designated census tract.
The home must pass an independent pest and dry rot inspection.
The home must have an independent full home inspection.

Documents

Lender Information - Acquisition
Lender Information - Acquisition/Rehabilitation
NSP Application
NSP - Inspection Report
Disclosure to Seller of Fair Market Value
Lender Compliance
Environmental Review Property Standards Inspection - Home built before 1978
Environmental Review Property Standards Inspection - Home built after 1978
Notice of Voluntary Sale
Maps

Links of Interest:
Oregon Housing and Community Services (OHCS) - provides additional information and the income limits.
OHCS First time homebuyer training - Links to approved classes
Federal Debarment List - to determine the eligibility of contractors.
State Debarment List - to determine the eligibility of contractors.

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