This program grants qualified homebuyers up to $80,000 in forgivable loans toward the purchase of foreclosed or vacant homes in eligible neighborhoods in Brooklyn, Queens and Staten Island. Housing counseling and homeowner training for participants will be provided through local program partners. The eligible neighborhoods were selected based on HUD criteria used to identify the neighborhoods which have been most adversely impacted by the mortgage foreclosure crisis of recent years.
Under the new NSP 2 Homebuyer Assistance Program, prospective homebuyers who wish to participate must meet HUD income requirements and seek to purchase foreclosed or vacant homes in program eligible neighborhoods. The home to be purchased must also be the homebuyer’s primary residence. Rental units in two, three, and four unit homes purchased under the NSP2 Program will be subject to rent and income restrictions.
The New York Mortgage Coalition (NYMC) is a nonprofit collaboration of financial institutions and community housing agencies dedicated to helping low to moderate-income families. The New York Mortgage Coalition will serve as administrator for the NSP2 Program. NYMC will work with partners to identify eligible foreclosed homes as they come on the market making it possible for buyers to have a “first look” as properties become available. NYMC will work directly with neighborhood partners to coordinate initial home inspections and attend all closings.
To be eligible, the purchasers’ income cannot exceed 120% of the Area Median Income and they are required to receive at least 8 hours of homeownership counseling from one of the 10 HUD-certified community-based homeownership counseling partners working with the New York Mortgage Coalition. These partners will provide additional one-on-one counseling to help the purchasers to secure a mortgage. A buyer in the program will have access to some homes before they go on the market, and may be able to obtain a below-market price. Qualified participants must purchase qualified homes in targeted neighborhoods. If a home requires repairs, eligible purchasers may apply for 203K or SONYMA Remodel New York mortgages which permit owners to borrow funds for repairs.
Again, for more information, please see the NYMC site at http://nymc.org/nsp2