San Diego Neighborhood Stabilization Program

Home Buyer Assistance Programs

 

 

Neighborhood Stabilization Homeownership Program Funding now available

 

The pre-approval application process is now open for first-time home buyers seeking to purchase foreclosed properties in the City of San Diego through the San Diego Housing Commissions (SDHC) Neighborhood Stabilization Homeownership Program (NSHP).

 

NSHPs primary objective is to help a first-time home buyer from a low-moderate income

(Up to 120% Area Median Income) with good credit and the ability to make mortgage payments buy a foreclosed property within the City of San Diegos targeted areas in City Council Districts 3, 4, 7 and 8 from San Ysidro to Miramar. Click here for maps of the targeted areas.

 

A first-time home buyer is defined as an individual who has not owned a home in the last three years.

 

The financial assistance is made possible through a $9.4 million federal grant, (Housing and Recovery Act of 2008-H.R. 3221), which was awarded to the City of San Diego in January and is being administered by the San Diego Housing Commission.

 

Pre-Approval

 

San Diego Housing Commission (SDHC) is currently accepting pre-approval applications for NSHP. First-time home buyers who believe they meet the requirements for the program are encouraged to contact a certified NSHP lender to assist with the process; or the buyer can complete the pre-approval application on their own and deliver it to:

 

San Diego Housing Commission

Attn: Loan Management

1122 Broadway #300

San Diego, CA 92101

 

Upon receipt of the pre-approval application, SDHC will determine the buyers eligibility and issue a pre-approval letter that can be submitted with a purchase offer using the NSHP.

• Certified Participating Lenders

• NSHP Pre-Approval Application Instructions

• NSHP Pre-Approval Application 

For questions regarding the NSHP pre-approval process, contact:

Vicki Monce 619.578.7491 or vickim@sdhc.org

 

Home Buyer Education

 

All potential buyers are required to attend an eight hour home buyer education class with a SDHC approved class provider. The buyer must attend the class before placing an offer on a property. The classes fill up quickly, so any buyer considering participating in NSHP should enroll in a class today!        

• Home Buyer Education Providers

NSHP Deferred Payment Loan

 

SDHC will provide eligible buyers with a 0% interest deferred payment loan up to 17% of the sales price to assist in the purchase of the home. No payments are required for 30 years, unless the property is sold, refinanced or not owner occupied, at which time the loan must be repaid. A minimum of 3% down payment from the buyers personal funds is required. The first trust deed loan must have a 30-year fixed interest rate.

 

NSHP Closing Cost Assistance Grant

 

SDHC will provide eligible buyers with a closing cost assistance grant up to 3% of the sales price. The grant can ONLY be used to pay closing costs which are not covered by seller concessions or other subsidies. The grant is recoverable, and must be repaid plus 5% interest if the property is sold, refinanced, or not owner occupied within the first six years. After six years, the grant is forgiven.

 

NSHP Rehabilitation Loan

 

SDHC will provide eligible buyers with a 0% interest rehabilitation loan up to $50,000. The rehabilitation loan must be used for repairs related to health and safety, curb appeal, and energy efficiency. Loans up to $10,000 will be forgiven in 5 years; loans up to $30,000 will be forgiven in 10 years; loans up to $50,000 will be forgiven in 15 years. If the property is sold, refinanced, not owner occupied, or if the repairs have not been maintained within the term of the loan, the rehabilitation loan must be repaid plus 3% interest.

 

Related documents for home buyers

• NSHP Summary Chart

• NSHP Pre-Approval Application Instructions

• NSHP Pre-Approval Application

• NSHP Program Guidelines

• NSHP Targeted Area / Council District Maps

• Income Chart

• Certified Participating Lenders

• Home Buyer Education Providers

• Certified Housing Quality Standards Home Inspectors

      Related documents for certified NSHP lenders        

• NSHP Program Manual

• NSHP Loan Submission Packet

• City of San Diego Council Districts by Census Tracts

• NSHP Pre-Qualification Application Instructions

• NSHP Program Guidelines

via sdhc.org

Click this link for website and forms!
http://sdhc.org/NSP.shtml

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HUD Waives 90 Day Flipping Rule Beginning Feb. 1, 2010

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties

WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.

In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development ad enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

via us.mc637.mail.yahoo.com

 

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San Diego County Leads Region in Home-Price Gains

County leads region in home-price gains

Pace of sales, compared with ’08, also increasing

By Roger Showley, UNION-TRIBUNE STAFF WRITER

Wednesday, January 20, 2010 at 12:02 a.m.

 

San Diego County, with a 10 percent increase, led Southern California in home price improvement last month, although Los Angeles had the highest sales growth on a year-over-year basis, MDA DataQuick reported yesterday.

Overall, the six-county region had a 4 percent increase in median price, rising from $278,000 in December 2008 to $289,000 last month. It was the first year-over-year improvement since summer 2007. The one exception was the Inland Empire, where prices in Riverside and San Bernardino counties were lower in December than a year earlier.

Sales were up 12.1 percent regionally, while San Diego, as earlier reported, was up 9.8 percent and Los Angeles was up 31.3 percent.

Kelly Cunningham, senior economist at National University’s Institute for Policy Research in San Diego, said the coastal counties typically fare better than the Inland Empire because of the historic preference for living near the beach and the lack of new development in the nearly built-out coastal zone.

“It’s somewhat encouraging that things are picking up,” he said.

During the mid-2000s boom, many San Diego workers fled to southern Riverside County to take advantage of lower prices for bigger homes. With the latest figures, the price gap between San Diego and Riverside grew from $91,000 in December 2008 to $134,000 last month. But Cunningham said San Diego workers looking to buy may still find it more affordable and tolerable — at least for now — to stay local than to endure the hour-plus commute.

“At some point, I think it will turn around, but we’re not there yet,” he said.

In other findings from DataQuick, the “flipping rate” — resales of homes within three weeks and six months of the initial purchase — was lowest in San Diego County in December at 2.4 percent and highest in San Bernardino County at 3.8 percent. The regional average was 3.1 percent. Cunningham said the lower rate in San Diego County may reflect relatively more investor interest in foreclosure properties elsewhere.

The percentage of resales that had gone through foreclosure in the previous 12 months was 39.6 percent regionally in December, up from 39 percent in November. San Diego’s rate was 35.8 percent last month, up from 32.6 percent in November.

In financing, Southern California buyers typically paid $1,231 per month in mortgages last month, up from $1,207 in November but down from $1,239 a year earlier. Adjustable-rate mortgages accounted for 4.6 percent of home loans, the highest since September 2008 but far below the 51 percent average level since 2000.

Federal Housing Administration-insured loans accounted for 39.6 percent of all home purchase mortgages, up from 39.1 percent in December 2008; 24.9 percent of sales were all-cash deals involving no mortgage, compared with 22 percent a year earlier — another indication of investor interest in foreclosures.

via signonsandiego.com

 

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