Wow, this is AWESOME! Do you want to buy a home while prices are so depressed, but don’t have enough cash for the down payment? Here is your answer. Check out the Phoenix Neighborhood Stabilization Program! You must be an owner occupant, have $1,000 to contribute towards the purchase and be under 120% of the median income.
Great idea. This isn’t like 2004-2007 when people putting nothing down and then found themselves upside down easily decided to walk away (just like the people that put 20-40% down). Buying at today’s lows for a first time home buyer is a winning lottery ticket. As long as they are comfortable with their job for the next 3 to 4 years. The entry level market is acutually appreciating right now! People putting a minimal down payment at the entry level are usually in an equity position after about 6 months in today’s market.
Oh, by the by, you do have to pay the $15,000 back, but until you refinance or sell.
Check it out, I am thinking of an entry level home at 32nd St and Bell Road. The rents are down, so let’s say it rents for $950. It sells for $90,000 today!!! Yes, $90,000!!! OK, so the payment on that would be $417.32 for principle and interest, taxes another $100 and insurance $50. But remember there is a tax deduction of close to $150 per month. But let’s leave that out, the estimated payment is $667.32 to own the home with a fully amortizing loan! This is a no brainer! Find Foreclosure homes here!
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Buying a foreclosed home within the city of Phoenix has its advantages.
The city of Phoenix Neighborhood Stabilization Program (NSP) offers a homeownership assistance program providing $15,000 for down payment and closing cost assistance. Eligible buyers must be FHA creditworthy and have completed the NSP-required eight-hour Homeownership Education Class and Credit/Budget Assessment counseling course.
Buyers must maintain the property as their principal residence and the total household income must be below 120% of area median income. For example, a household of four earning $79,100 or less has the potential to become eligible to participate. Program participants must contribute a minimum of $1,000 of personal funds for down payment or closing costs.
The program targets foreclosed single-family homes, townhomes and condominiums (condominium conversions are not eligible) that meet HUD Housing Quality Standards (HQS). The purchased home must be a foreclosed home anywhere within the city of Phoenix limits and meet other eligibility requirements.
The $15,000 is paid back to the city when the homebuyer sells the home or refinances.
Funds are still available.
For more information visit phoenix.gov/nsphome or call 602-262-6602.
City of Phoenix Neighborhood Services Department: 200 W. Washington Street, 4th Floor, Phoenix, AZ 85003