NEIGHBORHOOD STABILIZATION FACT SHEET

As part of the federal Housing and Economic Recovery Act of 2008, Wicomico County and Salisbury Neighborhood Housing Service have been awarded funds under the Neighborhood Stabilization Program. The purpose of the program is to address vacant properties in certain areas of Wicomico County that have been foreclosed on and are now bank owned properties.

The funds will be used to provide financial assistance to qualifying homebuyers for soft second principal buy-down grants/loans, closing cost grants/loans, rehab loans.

Funds are now available. Requirements of program are subject to change without advanced notice. Please call our office with specific questions.

Program Requirements

• All Funds must benefit Low Moderate Middle Income households.

  HUD-NSP Maximum Income Limits by household size for Wicomico County

  1- $58,150	5- $89,700
  2- $66,450	6- $96,350
  3- $74,750	7- $102,950
  4- $83,050	8- $109,600

  
  

• Only foreclosed properties in the following zip codes are eligible, no exceptions: 21801, 21804, 21837, 21850

• Properties must be REO properties and vacant

• Acquisition Discount - Foreclosed housing must be acquired at a minimum 1% discount of current appraised value.

• First mortgages obtained by homebuyers must be at a fixed rate for a minimum of 30 years. No sub-prime mortgages may be obtained by homebuyers.

• All homebuyers must complete a minimum 8 hour HUD certified Homebuyer Education Class

• All grants and/or loans will be secured via a lien or Deed of Trust. If homeowner sells or refinances at any time during the lien period on the grants, a pro-rated portion will be due and payable. Lien term is 10 years.

• Homebuyers will be required to sign Owner Occupancy Rider which will be recorded with the mortgage(s)/liens. Failure to owner occupy the property will be considered a breach of contract.

• Home inspections are required.

• Maximum principal buy-down grant: $15,000

• Maximum closing cost grant: $7,000

• Maximum rehab grant: $8,000

All Neighborhood Stabilization funds must be obligated by June 30, 2010. No applications will be accepted after this date. Funds will be awarded on a first-come, first-served basis.

Neighborhood Stabilization Program Checklist

Required Documentation from Applicant

• Your driver's license (or other form of photo ID) and that of any co-applicant.

• Your social security card and that of any co-applicant. Also, if not a US citizen, provide Resident Alien (green card) documentation.

• Current 2 months pay stubs for all household members, the name, address, phone # of employer(s), and dates of employment for the last two years, or award letters for Social Security, Welfare, or Veterans Administration benefits, income from annuity plan, rental or other income, include proof of this. If self-employed, a year-to-date Profit and Loss Statement is required in addition to the annual tax return.

• Previous two years W-2 forms and precious 2 years Federal & State income tax returns (please make sure the forms are complete and sign the copy). If you do not have these available, contact the IRS tax office/Comptroller's office for official printouts.

• Copy of ratified sales contract

• Copy of your first mortgage application.

• Copy of the commitment letter from first mortgage lender

• Copy of current (within 3 months) appraisal

• Copy of home inspection - required

• Copy of Homebuyer Education Certificate - must be no older than one year

• Equal Opportunity Data Collection Form

• Signed Lender Certification Form from the first mortgage lender regarding Subprime mortgage lending.

Required Documentation from Bank (REO) Property Owner

• Certification that property is being sold at a minimum 1% discount of the current (within 3 months) appraised value.

• Proof of foreclosure - copy of the final auditors report