San Jose Real Estate * REALTOR ® * Richard Gonzalez

National Stabilization Program(NSP) Round 2

Santa Clara County has quietly become an example of a initiative to revitalize it’s housing market by injecting a twenty five million dollar grant into its neighborhoods. NSP2 dollars have been awarded by the Department of Housing and Urban Development (HUD) under the American Recovery and Reinvestment Act (ARRA) to targeted cities in an effort to fight blight in specific neighborhoods that could stall the housing recovery.

The second round follows on the heels of a first round that was rewarded last year and has since expired. The management of the funds is handled by the Housing Trust of Santa Clara County.

How NSP2 will be used in Santa Clara County

NSP2 will be used to provide up to 100 Purchase Assistance Loans to low and moderate income households buying foreclosed and abandoned properties within the designated area. Acquire and rehabilitate up to 105 bank- owned homes for resale to low and moderate income households. Twenty-five percent of the grant total ($6,250,000) will be reserved to assist households at or below 50 percent of area median income.

Target Areas in Santa Clara County

NSP2 dollars must be used in targeted census areas.

Download area map to see if you are buying in a neighborhood that is benefiting from NSP2.

Census Tracts-Council Districts

What are the requirements?

Santa Clara County has programs to put first time home buyers into homes specifically in the unincorporated areas including the Burbank area near Santana Row. The program is run by the Housing Trust and relies on grants and is available at various times of the year depending on the availability of government funds.

Timing is Everything

Programs like these are available until the pot of money runs out making it a challenge for some and perfect timing for others. Buyers considering this type of program should check with the Housing Trust before counting on it’s assistance.

Housing Trust Programs for First Time Home buyers

The three programs comprise of the following:

Closing cost assistance – $6,500 to help with buyers closing costs

Down Payment Assistance - $15,000 low interest loan deferred for 60 months

Mortgage Assistance – Applications available September 8th 2009

Income Limits are the Catch

Generally any government funded programs like this are meant for buyers who need that extra help to get the over the top and into a home. Here are the income limit requirements for 2009.

Broker’s Advice

Use this resource of funds to help structure your offer, this will help you write a stronger offer.  Especially if you are not having to ask a seller to credit you for closing costs and if you can show that you have a larger pool of  funds to close because you qualify for one or more of these programs.

For more information click on the following:

Housing Trust Website link here