Ga dream nsp
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The Georgia Dream Neighborhood Stabilization Program provides $14,000 loans for down payments to assist home buyers purchase foreclosed properties in selected counties. The loan is forgiven gradually over 5 years as long as the buyer occupies the home. To qualify, buyers must complete a homebuyer education course, purchase a foreclosed home in an area of high need below 85% of its appraised value, and earn less than the income limits. The program aims to help buyers purchase affordable foreclosed homes using FHA rehab loans while stabilizing hard-hit neighborhoods.
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Ga dream nsp
- 1. Georgia DreamNeighborhood Stabilization Programwww.dcaloans.com
- 2. What is the Georgia Dream Neighborhood Stabilization Program?Georgia Dream NSP is NOT the same as the conventional Georgia Dream Home Ownership Program. While the income limits will mean that fewer applicants will be able to qualify for this assistance, those who do qualify will be able to claim $14,000 in down payment assistance.To apply, buyers must: Complete eight hours of home-buyers education from a HUD approved housing counseling agency;
- 3. Contact a participating lender to begin the mortgage loan process What is the Georgia Dream Neighborhood Stabilization Program?Effective April 1st 2009, the Department of Community Affairs and Georgia Dream unveiled a program to assist any home buyer in the purchase of foreclosed property in selected counties.The program provides a $14,000 loan to buyers, which shows as a lien on the property. The first 20% of the loan is forgiven after 18 months of ownership, and 20% more is forgiven each year. After 66 months of ownership, the loan is completely forgiven and does not need to be repaid. The interest rate for the $14,000 NSP loan is likely to be a couple of percent higher than the home loan. Since the program is aimed at buyers purchasing foreclosed homes, eligible home loan packages include FHA 203(k) Streamlined Rehab Loans.
- 4. To qualify, buyers must: Be purchasing a foreclosed property for use as a primary residence
- 5. Be purchasing in one of the Areas of Greatest Need
- 6. Have a household income level which is less than specified limits
- 7. Complete 8 hours of tuition
- 8. Use a participating lender
- 9. Sale price must be less than 85% of the appraised fair market value
- 10. Qualify for the home loan, just like everyone elseWhere are the Areas of Greatest Need?The Department of Community Affairs have defined the following areas as being among those in greatest need: Barrow
- 11. Cherokee
- 12. Clayton
- 13. Cobb
- 14. DeKalb
- 15. Douglas
- 16. Forsyth
- 17. Fulton
- 18. Gwinnett
- 19. Hall
- 20. Jackson
- 21. Rockdale
- 22. WaltonWhere are the Income Limits?The income limits are 120% of the HUD area median income. All income from all sources should be counted, including child support, alimony, disability, etc.
- 23. How is the $14,000 Funded?Right now, the DCA is asking lenders to provide the money, which the DCA will refund to the lender. The DCA will also provide lenders with a $900 NSP Origination Fee. What Can the $14,000 Be Used For?The money can be used for any repairs, and the whole of the remaining amount may be used for down payment.The money may not be used for closing costs, appraisals, inspections, etc.
- 24. What about Homeownership Education?As with the traditional Georgia Dream Program, NSP applicants must complete eight hours of homeownership education.Six of these hours will be group classroom lessons, with the final two hours being one-on-one tuition.Be sure to sign up your buyer as soon as you know theyre looking at this program, classes fill up fast and buyers who have not completed this requirement before closing will not be granted the $14,000.The complete list of education agencies is available online. Go to www.dcaloans.com and find the link for Find a Home Buyer Education Counselor, located on the left of the page. Click the link to see a list of agencies available in Georgia.
- 25. Who are the Participating Lenders?Since the program means that buyers will have additional forms to file with their offers, and with their loan application, lenders must complete training to become eligible in the program. Lenders are different from county to county, but this is the list of Georgia Dream lenders:AmericaHomekey Inc, AME Financial Corporation,Amerisave Mortgage,Am Trust Mortgage,Atlantic Southern BankAugusta Mortgage Co, Bank of AmericaBank of Lenox Bank of Upson Branch Banking & Trust Co, Brand Mortgage GroupBriarwood Financial ServicesCapital City BankCDC Federal Credit UnionCHI d/b/a NeighborWorks ColumbusCitizensTrust BankColonial BankCornerstone Mortgage,Countrywide Bank,Credit Union Financial Services CTX MortgageElement FundingEmory Federal Credit Union,Family BankFidelity Bank d/b/a Fidelity Bank MortgageFirst Citizens Bank & Trust Co, First Horizon Home Loan Corp, First National Bank of GriffinFirst National Bank of Waynesboro First Service MortgageFirst State BankFirst Metro MortgageFlagstar BankFNB-SouthFreedom MortgageGeorgia Bank & TrustCompany of Augusta,Georgia Coastal Federal Credit Union Georgia Telco Credit UnionGMAC MortgageGuaranty Mortgage Services,Heritage Bank of The SouthHome America MortgageInfinity Mortgage CorpIronstone BankJ P Morgan Chase Bank MetLife Home LoansMortgage Counseling Services, Inc, Mortgage Investors GroupNational City MortgageNew South Federal Savings Bank One World Mortgage CorpOpteum MortgageMetrocities MortgageNorthstar Mortgage GroupOxford CapitalPalladium MortgagePHH Mortgage Corp, Pine State Mortgage Planters & Citizens Bank Planters First BankPrimary Capital Advisors LC Primary Residential Mortgage Prime Home MortgageProfessional LendingQueensborough National Bank & Trust RBC Centura BankReal Estate Mortgage NetworkRegions Bank d/b/a Regions MortgageSecurity Real Estate Svc dbaSecurity Mortgage Shelter Mortgage dbaFairfield Mortgage Southern Crescent Mortgage & InvestmentSunTrust Mortgage Synovus Mortgage CorporationTaylor, Bean & Whitaker Mortgage Corp, The Claxton BankThe Coastal BankThe Farmers BankThe Mortgage Division, Inc, The Security State BankThomas County FederalUnited BankUnitedCommunity Mortgage Services Unity Mortgage Corp, Utah Financial Inc, USDA Rural DevelopmentW.R. Starkey MortgageWells Fargo BankWieland Financial Services, Inc.For full details, go to: www.dcaloans.com
- 26. Why does the offer need to be less than 85% of fair market value?The appraisal must be carried out within 60 days of the binding agreement date so if the property is bank owned, the appraisal carried out by the bank when it was foreclosed can be used, as long as it was within 60 days of the binding agreement. REO realtors should be willing to share that appraisal if you tell them that your client is looking at using the GA Dream NSP Program.Most foreclosures are already priced at less than 85% of market value, so thats usually not a big worry. Now pay attention, since math works the way it works, the appraisal cant just be for the sale price plus 15%.You might think that a sales contract for $170,000 needs to appraise for $170k plus 15% (to get to 100%), which would mean that the appraisal would need to be for at least $195,500. However, the sale price needs to be for 15% less than the appraisal value, and that means that the appraisal would need to be for at least $200,000 (because $170k is 85% of $200k.)The appraisal needs to be for 17.7% more than the sale price, and the sale price needs to be 15% less than the appraised value.
- 27. A Word of WarningThe $14,000 down-payment assistance is a loan. It must be re-paid if the buyer sells within 66 months of closing.The DCA is a government agency. If the buyer is anything less than completely honest in the completion of their paperwork, or fails to disclose something that they ought to, the DCA will find out and will decline the $14,000 loan. If the lender fails to submit all the necessary paperwork to the DCA, then the loan application will be delayed until all the paperwork has been received.If the buyer fails to complete the required education, the application for assistance would be declined.If the buyer doesnt take up residence at the property as owner-occupier, the DCA will find out and demand immediate re-payment of the loan.There are many hoops for buyers to go through, and a lot of things for realtors to learn. This guide should be a place to begin the discussion with buyers, and to encourage you to learn more about this exciting program so you can better advise your clients.