NSP2 First-Time Homebuyer Assistance Program
Your First Home Is Just A Few Steps Away
The City of Long Beach is partnering with select local lenders and realtors to bring you the Neighborhood Stabilization Program 2 (NSP2) a First-Time Homebuyer Assistance Program.
If you’re a first-time homebuyer, through NSP2 you may qualify for a second silent mortgage loan of up to $140,000 to assist with the purchase of a foreclosed or Short Sale single-family home in the City of Long Beach. Plus, you may also qualify for up to $40,000 in grant funding for code-related repairs, energy-efficiency home improvements and closing cost assistance.
WHAT PROPERTIES ARE ELIGIBLE?
Foreclosed (REO) or Short Sale single-family detached homes or condominiums located within an eligible NSP2 area.
DO YOU QUALIFY FOR THE NSP2 PROGRAM?
- Applicant may not have owned a home in the last three years.
- Applicant must attend and complete an 8-hour Homebuyer Education Class.
- Borrower must occupy the property as their primary residence.
- The total projected annual adjusted gross income of all adults 18 years of age or older who will be living in the home must be at or below certain limits.
- Deferred, requires no monthly payments.
- Equity Share applies to all loans. For example if a homebuyer receives a $50,000 loan from the City to purchase a home with a $200,000 sales price, the Equity Share percentage would be 25% ($50,000/$200,000). Therefore, upon sale, the $50,000 loan plus 25% of the home’s appreciation will be paid to the City. Additionally, a percentage of the Equity Share is forgiven for every year that you maintain the home as your primary residence. The Equity Share percentage is 100% forgiven after 30 years.
- NSP2 Loan is due on sale, title transfer, or first mortgage repayment.
- Refinancing of first mortgage is allowed by the City under certain conditions.
NSP2 REHABILITATION AND CLOSING COST GRANT TERMS
- Applicants are eligible to receive up to $30,000 in grant funds to pay for code-related repairs and energy efficient improvements.
- Applicants may be eligible to receive up to $10,000 in grant funds to pay for Closing Costs.
- Grant funds to do not have to be repaid to the City.
DOWN PAYMENT REQUIREMENT
- A minimum of one percent (1%) of the property purchase price is required as down payment. The 1% must come from the Borrower’s own funds. Borrowers may be required to contribute more than 1% of their own funds towards the down payment to complete the purchase.
HOW DO YOU GET STARTED
STEP 1: FIND OUT IF YOU PREQUALIFY FOR A HOME LOAN AND THE NSP2 PROGRAM
- Contact one of the City’s NSP2 Select Lenders to get prequalified for a first mortgage and the NSP2 Program.
- STEP 2: FIND YOUR HOME
- Contact one of the City’s NSP2 Select Realtors for assistance in locating a home that is right for you. Property will be inspected by the City to determine if repairs are needed.
- If repairs are needed, you may qualify for up to $30,000 in grant funding for rehabilitation and energy-efficiency improvements.
STEP 3: ESCROW
You’re almost home! Once you’ve opened escrow on your new home, your NSP2 Select Lender will submit your mortgage assistance loan application to the City of Long Beach for review and approval.
Your lender and realtor will guide you through escrow and closing, until the keys are in your hands.
FIRST-TIME HOMEBUYERS’ SEMINAR
As part of NSP2, you’ll be required to attend a HUD-certified First-Time Homebuyers’ Seminar. This 8-hour course can be taken at any time during the qualification process. For the next First-Time Homebuyers’ Seminar in Long Beach, call Operation HOPE at (562) 218-5011.
If you’re ready to buy, we’re ready to help
Call or email me Today. Lets start finding you your own piece of California.