Travis County has recently made available $1.3 million in federal funds to help Texas families purchase FORECLOSED homes in the Austin area – it’s called the Neighborhood Stabilization Progam.
Here are some details & points about the NSP-1 program:
- There are defined targeted areas where to purchase the homes within Travis County (not including within the city of Pflugerville), but any day now the County is expected to get official permission to include the entire city of Austin
- Buyers may use the lender of their choice but the County can refer to a list of lenders that have gone through the process
- If a family is below the 50% income max – they can get financed directly through Travis County
- 100% financing is available, including closing costs – and it is 100% forgivable after either 5 or 10 years of ownership depending on the size of assistance
- The size of the loan is determined by the difference between what the buyer is qualified for and the cost of the home
- Thus far they have closed on 3 homes and the maximum loan has been $26k
- This can be an amazing opportunity for families to own a home, but be warned that the process is a bit tricky & time consuming. Paperwork/forclosure/timing. Make sure your REALTOR is well educated on all the processes
- The County’s goal is to be within 15% of appraised value of the home. For example is a home is appriased at $100k, the goal is to purchace it for $85,000. This isn’t a total requirement and is hard to acheive. If the house purchase price is for more than the appraisal it won’t work.
- To qualify, the buyers need a credit score of at least 620
- Buyer must have a minimum of $500 to invest towards the purchase
- Buyer must have interest in purchasing a forclosed home by May 31st 2010
- Have a total household income below the amount in the chart below
For details on how to apply and for contact information please go to the Travis County Housing Finance Coroporation website! http://www.traviscountyhfc.org/nsp-1.html
I think despite the hoops and paperwork – this program is super beneficial to both neighborhoods and potential homebuyers.
Realtors & buyers please don’t hesitate to contact me with any further questions, I have talked at great length to people in this department and am happy to investigate further!