NSHP Funds have been exhausted.
The program has been suspended until further notice.
What is the process to apply for the NSHP Program?
- If you are a first-time homebuyer whose income is within the Program limits, the first step is to contact a participating lender for eligibility screening. The lender will take a loan application at this time and pre-qualify you for a first loan and the NSHP Program. The lender will also determine the maximum home price that you can afford.
- After the lender has determined if you are eligible for the program, you will need to attend an 8 hour homebuyer education class for the NSHP Program. The lender will provide the names and phone numbers of approved homebuyer education providers, and you will need to call one of the providers to schedule a class. There may be a minimal charge to attend this class. Note: Make sure to call in advance for classes fill up fast.
- Once you are pre-qualified for the program and have a maximum home price, you may locate a home to purchase. Home must be built after 1978 and not be listed on, or eligible for listing on the National Register of Historic Places. If you are interested in an existing home, it is recommended that you contact a Realtor to assist you in locating a home to purchase. Note: The home under this NSHP Program must be a vacant (at least 90 days) foreclosed home in the NSP target areas. For more information regarding the NSHP target areas visit NSP Target Area Maps.
- Once you have located a home, you will need to make a purchase offer and start escrow. Your real estate representative or new home salesperson and your lender can assist in this process. You must provide a NSHP-3 form (Homeownership Notice to the Sellers) and NSHP-6 form (Voluntary Acquisition of Foreclosed Property) as an addendum to the purchase contract. Your lender will not be able to process your loan application to the EDA without the completion of these forms. Once your purchase offer is accepted and escrow begins, your lender will assist you in completing the application materials for the NSHP Program. The maximum purchase price for the NSHP Program is $292,686. Purchase price must reflect a minimum discount of one percent (1%) or more of the current market appraised value provided by EDA approved appraisers.
- During escrow, your lender will process your loan application for the first mortgage and NSHP Second mortgage. You will be required to sign forms authorizing the lender to submit a NSHP Application and Reservation on your behalf and disclosing your current income from all sources.
- In addition to the purchase price assistance, you may also apply for home repair assistance to address energy efficient improvements and increase curb appeal and landscape. All items must be pre-identified prior to the close of escrow and approved by EDA.
- Prior to the close of escrow you will sign loan documents and both the first and second mortgages will be funded. When escrow closes, you will become a homeowner and will be responsible for maintaining the property in sound condition. You will begin making monthly payments on your first mortgage. The NSHP Second Mortgage will not require payments until you sell your property. After the 15 year affordability period, the NSHP assistance is converted to a grant with no repayment of funds.
Neighborhood Stabilization Homeownership Program (NSHP) Approved Lender List [PDF- 350KB]