If you have been excited about the 8000 tax credit, thinking it is a great reason to buy a new home – you are right.

But now there is something even better – even more money – if you agree to buy a foreclosed home, meet a few financial requirements and agree to attend 8 hours worth of home buyer counseling.

The “free money” mortgage program is called the National Stabilization Program and on top of giving you money to buy and live in a home, it is required that you only have a 1% down payment when combined with an FHA loan.

National Stabilization Program Highlights:

• If you own a residence, you must be leasing your primary residence at least 12 months before applying for the program.
• You must use us a lender from the ADOH participating lender list.
• You must attend and complete an eight‐hour Homebuyer Education Class provided by one of the ADOH participating home buyer counseling agencies. (A list will be provided by your lender once you begin the process.)
• The property you purchase must be your primary residence.
• You must have a maximum debt‐to‐income ratio of 31/43.
• You must be AUS approved eligible.
• You must have two months PITI reserves.
• You can use any type of financing with the NSP program – including paying cash. That means you can still get up to 22% of the purchase price even if you pay cash for the house.
• You must be approved and have your paperwork completed for the program prior to submitting an offer on a house.

National Stabilization Eligible Property Types:

• Foreclosed properties only.  A property is considered “foreclosed upon” at the point that the mortgage or tax foreclosure is complete.
• One‐unit detached single family homes, condos and townhomes.
• The property must be vacant at time of listing.

National Stabilization Program Purchase Price Limits: 

There are limits to how much of a house will qualify for the program – below are the purchase price limits for the counties in Arizona:

National Stabilization Program Income Limits:

In order to qualify for the program, you must have a gross income (the total income before taxes, health care costs, social security, etc.) of no more than 120 percent of the average median income for the county they want to purchase a foreclosed house in.

Income Limits For Maricopa County:

National Stabilization Program: Down Payment Requirements

A minimum of 3 percent of the property purchase price is required as down payment. One percent must come from the borrower’s own funds. Two percent can come from any other approved source.

National Stabilization Program: How Much Money Can You Get?

1. Up to 22 percent of purchase price
2. All loans are forgivable after a period of time based on the amount of the loan.
   * 5 years for assistance of $15,000 or less
   * 10 years for assistance of $15,001‐$40,000
   * 15 years for assistance of more than $40,000
3. All loans are zero percent interest with no monthly payment.
4. The balance of the loan is forgiven at the completion of the term.

Get Qualified For The Program

Because you have to make sure all of your paperwork is completed prior to submitting an offer – it is important to get in touch with the loan officer as soon as possible so you can get the process started. Right now, there is money available and this program is “real” in the sense that you really can get money to help you buy a home.

Call us anytime – we are happy to help you get the process started.