If you're looking to purchase a foreclosure in PG County and you're a first time home buyer, there's good news afoot! HUD has approved a new program to provide down payment assistance for low income families in PG county ONLY!
The Neighborhood Stabilization Program (NSP) and the Down Payment Closing Cost Assistance Program (DPCCA) have released their guidelines and trained a select group of lenders to be able to provide this program to potential homeowners!
How Does It Work?
Step 1: Find out if you qualify! Here's the eligibility requirements:
- Must be 18 years or older
- Must be a first time home buyer, or must not have owned anywhere for the last 3 years
- Home being purchased MUST be primary residence
- Annual household income must not exceed program limits (less than $86,600 for 1 person, or $99,000 for two people, if you have children, the limit increases. An income calculator for determining eligibility can be found at https://webapps1.hud.gov/hfc/calculator/)
- Must qualify for a loan from a participating lender (There are currently 37 approved lenders, give me a call for a complete list)
- Must contribute a minimum amount of cash towards purchase (Between $1,000-$2,000)
- Must have ratified contract of sale on a vacant foreclosed property (Need help finding that home? That's where a spiffy Realtor like myself comes into play!)
- Buyer must also attend an 8 hour minimum housing counseling class provided by HUD and receive a certificate of completion. (Class is free, and there's already a waiting list, so hop to it!)
What Does DPCCA Do?
DPCCA will provide up to $20,000 in closing cost assistance on an interest free loan, with an interest rate of 0%, that is payable only when you go to move! The longer you live in the property, the less you are required to repay! For example, if you live in the home for 3 years, you're required to repay 100%. If you live in the house for 4-6 years, the balance due is 50%. For 6-9 years, the balance is 30%, and if you live in the home 10+ years, you're not required to repay the DPCCA at all!
Essentially, this program is designed to allow low-income families to purchase foreclosed properties with minimal downpayment. The will help reduce the foreclosure blight that has troubled PG County, and reduce the number of vacant homes sitting in the area. This program can be used in combination with the $8,000 first time homebuyer tax credit, which means that it's possible to buy a vacant foreclosure for as little as $1,000 down, all closing paid, with 3.5% downpayment paid by DPCCA, AND $8,000 in tax credit provided by the federal government! The incentives to buy a foreclosure in PG County just keep growing!
~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell
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I did not know about this program before,Iam a fisrt time home buyer in PGC.I just purchesed a single family home in Hyattsville in July 28.Iam low income earner ,Do i still qualify for this porgram
Posted by: Nicholas | August 13, 2009 at 03:24 AM
Unfortunately the program is for people who are buying a home, not for people who have already bought. The program was already in place when you purchased, you should inquire with your realtor to see if there are any measures you might be able to take.
Posted by: Jonathan Benya | August 13, 2009 at 11:13 AM