What is the Neighborhood Stabilization Program?
The Neighborhood Stabilization Program is part of HUD’s new Neighborhood Stabilization Program (NSP), offered through the Los Angeles Housing Department (LAHD). NSP provides down payment assistance to eligible homebuyers in the form of deferred payment second mortgages.
The goal of NSP is to “stabilize” communities that have suffered from foreclosures and abandonment. The funds loaned by NSP become part of the down payment needed to purchase a foreclosed or abandoned property. The NSP loan is recorded as a second mortgage on the purchased property. Payments on this second NSP mortgage are deferred.
NSP also provides deferred payment loans to repair blighted properties after the property has been purchased.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net. Northeast Financial is an approved NSP Lender.
Neighborhood Stabilization Program boundaries
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Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net. Northeast Financial is an approved NSP Lender.
Low Income Purchase Assistance (LIPA)
Los Angeles Housing Department (LAHD) has announced that the Low Income Purchase Assistance (LIPA) program has finally received funding and is effective August 18, 2009.
The program has received $4,142,164 this year and will assist homebuyers on a first come, first serve basis.
The LIPA program offers purchase assistance in the form of a deferred loan of up to $75,000 to low income households for down payment, closing costs, and acquisition financing.
The program is limited to first time buyers who have not had an ownership interest in any real property at any time during the last three (3) years. LIPA funds may be used to assist buyers who purchase a home in the NSP eligible areas only.
Eligible homes must be either approved short sales or conventional equity sales. Unapproved short sales are not eligible. Vacant foreclosed and REO properties are eligible under NSP.
Properties applying under the LIPA program will not be inspected by LAHD.
No rehabilitation/repair loan funds will be made available for properties applying under the LIPA program.
Rehabilitation/repair funds are still available under NSP.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net. Northeast Financial is an approved NSP Lender.