NSP 1 and 3 Homebuyer
What is the Neighborhood Stabilization Program 1 and 3 Homebuyer program?
The Neighborhood Stabilization Program 1 and 3 Homebuyer (NSP1H and NSP3H) program assists low and moderate income first-time homebuyers to purchase an eligible home in certain target areas of Riverside County. Assistance may be used for purchase price assistance and is provided as a silent second mortgage secured by the buyer’s home which bears 0% interest. A portion of the assistance may also be used to pay for closing costs for the homebuyer.
How Much Assistance is Available?
NSP1H and NSP3H purchase price assistance is available to a maximum of 30% of the purchase price of the home not to exceed $75,000. The minimum amount of assistance is $1,500. NSP1H and NSP3H funds can be used as a silent second loan that will be used as gap financing to 1) reduce the amount of first mortgage required in qualifying for the home and 2) can also be used to pay for up to 3% of the sales price to pay for closing costs on behalf of the homebuyer.
Who is Eligible?
Eligible participants must:
- Be a first time homebuyer (cannot have owned real estate nor claimed any real estate mortgage related tax dedcution in the past 3 years);
- Purchase an eligible home;
- Have sufficient income and credit worthiness to qualify for a 30-year, fixed rate first mortgage from a first mortgage lender;
- Be income qualified; and
- Occupy the home they are purchasing as their primary residence for 15 years.
How do I apply?
Prospective buyers must apply by finding an eligible property by visiting http://www.rchomelink.com/NSPHomes/tabid/73/Default.aspx and contacting the appropriate contact person for the eligible property.
- Household Income cannot exceed 120% of area median income
- Applicant(s) must not have owned real estate nor claimed any real estate mortgage related tax deductions in the past 3 years
- All household members must be either a US Citizen or a Qualified Alien
- First Mortgage payment (principal, interest, taxes, insurance(s), special assessments, etc.) is limited to 25%-35% of monthly household income
- Assistance is limited to a minimum of $1,500 and maximum of the lesser of 30% of sales price or $75,000
- Household size must meet occupancy standard
Home Buyer Education Providers