NSP3 Homebuyer Assistance Program
Who is eligible for this program?
An eligible homebuyer must:
- Complete an approved homebuyer training class and attend a CHAP orientation
- Be approved for primary financing through an Oregon-licensed lender
- Have a household income at or below 120% of the county’s median income
- Demonstrate a financial need
- Have sufficient income to qualify for and support the primary debt
- Contribute $1,000 in cash toward the purchase
An eligible homebuyer is not required to be a first-time buyer.
What are the loan terms?
- Zero-percent interest deferred-payment loan
- Up to $30,000
- Can pay for down payment, reasonable closing costs, mortgage reduction, and minor rehabilitation.
What type of property is eligible for this program?
An eligible property must:
- Be a single family housing unit
- Meet the NSP definition of an abandoned or foreclosed property
- Be located in a qualified census block in Clackamas, Oregon City or Molalla
- Have a purchase price below $246,168
- Meet property standards and pass inspection at closing (or shortly after closing with minor rehab of up to $5,000)
- Be the buyer’s primary residence throughout the life of the loan
Where are the target areas?
How do I apply for NSP funds?
Follow the steps for the CHAP funds.
What is the NSP?
The Neighborhood Stabilization Program (NSP3) was established under the Wall Street Reform and Consumer Protection Act of 2010 to provide federal funds to state, county, and local governmental units to acquire and redevelop foreclosed or abandoned properties with the goal of stabilizing neighborhoods impacted by the collapse of the housing market.
- Abandoned -- A home or residential property is abandoned if either a) mortgage, tribal leasehold, or tax payments are at least 90 days delinquent, or b) a code enforcement inspection has determined that the property is not habitable and the owner has taken no corrective actions within 90 days of notification of the deficiencies, or c) the property is subject to a court-ordered receivership or nuisance abatement related to abandonment pursuant to state or local law or otherwise meets a state definition of an abandoned home or residential property.
- Foreclosed -- A home or residential property has been foreclosed upon if any of the following conditions apply: a) the property’s current delinquency status is at least 60 days delinquent under the Mortgage Bankers of America delinquency calculation and the owner has been notified of this delinquency, orb) the property owner is 90 days or more delinquent on tax payments, or c) under state, local, or tribal law, foreclosure proceedings have been initiated or completed, or d) foreclosure proceedings have been completed and title has been transferred to an intermediary aggregator or servicer that is not an NSP grantee, subrecipient, contractor, developer, or end user.