The Housing and Economic Recovery Act of 2008 established the Neighborhood Stabilization Program (NSP) for the purpose of quickly stabilizing neighborhoods negatively affected by foreclosures and abandoned properties.
The City of Pasco has developed the NSP Down Payment Assistance Program for the purpose of expanding opportunities for affordable home ownership opportunities by offering financial assistance to low to middle-income homebuyers who purchase a foreclosed home.
Funding for this limited program is available for approximately 37 borrowers this year. As of last week, not a single person has taken advantage of this program.
Here is a simplified version of how the program works:
How the Loan Works?:
- The City will provide financing, up to $10,000.00, in the form of a Down Payment Assistance Loan.
- 30 year deferred payment 2nd mortgage at 0% interest.
- Upon completion of the deferral period or upon satisfaction of the 1st mortgage, whichever occurs first, the down payment assistance loan balance is amortized and paid annually over a ten (10) year period.
How the Program Works?:
- Applicant(s) must complete 1st time homebuyer education class.
- Applicant(s) will be required to contribute $1,000 toward down payment.
How to Qualify for NSP Assistance?:
- The house you wish to purchase must be a FORECLOSED home – no longer owned by the owner-occupant, but by the Trustee (Bank, HUD, Realtor, County, etc.)
- You must meet established household income minimums (see the application package for details).
What Do I Need To Do?:
- For more information call Lance Kenmore with the Kenmore Team today at (509) 727-8977 to help you get registered for this program and start looking for you new home.
