So you want to buy a foreclosure and would like some extra cash to do it? The Georgia Dream NSP (Neighborhood Stabilization Program) was created to encourage the purchase of foreclosed properties. The funds are from an allocation of federal dollars received by the Department of Community Affairs from the Housing and Economic Recovery Act of 2008.
The program provides $14,000 to eligible borrowers purchasing foreclosed properties in eligible areas. Funds are in the form of a second mortgage lien with no interest and no monthly payments, also known as a soft second. The lien is released over a period of five years and six months. That means if you stay in that house for 5 and a half years, you don't pay it back. Funds may be used for required repairs and/or down payment assistance.
This program began April 1, 2009 and all funds must be used by June 30, 2010. If you are a first time home buyer, get the most for your money and purchase before December 1, 2009 for an additional $8,000 tax credit.
How to Apply:
All buyers must receive eight hours of in-person home buyer education/counseling provided by a HUD-approved housing counseling agency. Courses are not available on-line.
Contact a Georgia Dream participating lender for pre-qualification and to begin the mortgage loan process. Yes, good credit is still important here. Call me for a recommendation on a participating lender.
Can I buy a home anywhere in Georgia?
No. You must purchase a foreclosed property in an area of greatest need which means an area that has a large inventory of foreclosures. Counties in metro Atlanta are included in this. For counties outside metro Atlanta please click here.
Are there income limits?
Yes. For the counties of Dekalb, Cobb, Fulton and Gwinnett the income limits are as follows:
- Household of 1 $59,800
- Household of 2 $68,350
- Household of 3 $76,900
- Household of 4 $85,450
- Household of 5 $92,300
- Household of 6 $99,100
- Household of 7 $105,950
- Household of 8 $112,800
For all other counties, please check www.dcaloans.com.
Are only first time home buyers eligible for the Georgia Dream NSP program?
Applicants do not have to be first-time home buyers and can own other real estate. However, the applicant must owner occupy the NSP financed property as his or her primary residence within 60 days of closing. Any rental income generated from the ownership of other real estate would have to be counted as household income for NSP qualification purposes.
If I am a first time home buyer and I use the Georgia Dream NSP do I still qualify for the federal first time home buyer $8000 tax credit?
Yes, if you purchase a home prior to December 1, 2009.
Can I use other down payment assistance with this program?
No, unlike the traditional Georgia Dream down payment programs, the Georgia Dream NSP cannot be combined with other down payment assistance programs.
What's next? Contact a local Realtor, like me who knows these programs. If you are already working with an agent, ask them for the details. Full time educated Realtors should know about these programs. If not, contact me to be your Buyers Agent and walk you through the home buying process. Jen Bowman, Broker Associate and Realtor with Success Realty 404-456-5024.
Info on $8000 Federal Tax Credit
Read more of the Georgia Real Estate Voice.
Realtor Jen Bowman is a Broker Associate licensed with teams in Georgia and Florida. She has been featured on HGTV's My First Place, HGTV's Buying and Selling 20 Best Kept Secrets, acted as a consultant for HGTV's Property Virgins and been featured in Inman News - where real estate and technology connect. Jen is a Certified Luxury Home Marketing Specialist and a member of Keller Williams Realty Luxury Home Division, catering to luxury home buyers and sellers.
Search for Homes in Cobb County, GA including Smyrna, Vinings, Marietta, Acworth, Powder Springs at http://www.BuyAndSellCobbHomes.com
Search for Atlanta's Luxury Homes including Cobb, Fulton, Dekalb and Gwinnett at LuxuryHomesGA.com
Search for homes in Manatee County Florida
See the best homes for sale on Anna Maria Island on Florida's gulf coast.
Visit Jen Bowman's Florida site at www.BowmanSellsHomes.com.
Visit Jen Bowman's Georgia site at www.JenBowman.com
Call or text 404-456-5024 today to get started buying your dream home in Cobb County, Georgia and surrounding areas, selling your current home in Cobb, or learning more about an awesome career in real estate.
Call 941-840-0117 today to get started buying your Anna Maria Island dream home and selling your Manatee County, Florida property.
We are hiring! Contact me if you are interested in working on a team or on your own. We are hiring real estate agents for the US, Canada, Indonesia and Southern Africa.