Downpayment and Closing Costs Assistance Program for Prince George's County Residents

Replies to This Discussion

Permalink Reply by Brian Turner on April 28, 2009 at 9:41am

Here is information directly from the PGCAR website:


LEGISLATIVE ALERT - April 6, 2009
Mike Graziano, Director of Government Affairs

DOWN PAYMENT AND CLOSING COST
ASSISTANCE UPDATE

Can $15,000 or more in closing assistance
help YOU place a buyer into a home?

Since November PGCAR has been keeping members informed about the County's down payment and closing cost assistance program entitled the Neighborhood Stabilization Plan. Those funds will be available soon, most likely around May 1. The County's Department of Housing and Community Development (DHCD) has been negotiating with the Department of Housing and Urban Development (HUD) to finalize the program guidelines. Recently representatives of PGCAR, lenders, title companies and others were invited to participate in a work session on the preliminary guidelines. While DHCD is approaching their final stages of approval we wish to inform you of the most recent details.


Preliminary Details:

Projected start date is May 1, 2009. Application packages will not be accepted prior to May 1st.

Applicant must be a first time home buyer, defined as "not owning a home within last three years". A co-signer that OWNS A HOME will disqualify the applicant.

DHCD will require a specific NSP application, a special contract addendum, and seller/borrower affidavits. (As of this printing these have not been released)

Participating Lenders must be FHA/CDA approved. Participating Lenders are required to attend training and execute a lenders agreement.

The lender will accept and complete the down payment assistance (DPA) loan applications and underwrite and qualify the first mortgage and pre-qualify the NSP DPA loan simultaneously.

Purchaser's total household income must not exceed NSP income limits as verified by lender.

Prospective property subject to FHA inspection or use a rehabilitation loan such as FHA 203K.

Contract price must reflect a 15% discount from an appraisal dated within 60 days of contract date.

Seller must pay a certain amount of closing cost assistance which will be stipulated in final program guidelines. (guidelines not yet finalized)

Applicants must attend 8 hours of HUD approved financial counseling classes.

Down Payment Closing Cost Assistance Program
DRAFT Program Fact Sheet

As we wait for the final "roll out" of the NSP there are a number of things that members can do to prepare:

Search MRIS and create an inventory of foreclosed properties
Attend FHA 203K Rehab Financing Workshops
Pre-Qualify buyers under the parameters of the income limits
Encourage your buyers to attend 8 hour HUD approved housing counseling and financial literacy classes prior to NSP application.

There is over $7 million dedicated to down payment and closing cost assistance and the state has indicated that they will contribute additional funding. It is estimated that this will translate into over 700 loans. Prepare yourself and your clients to be ready for this opportunity. PGCAR will continue to keep members informed on this issue.


Source: PGCAR

▶ Reply to This

Permalink Reply by NowUKnow, Inc. on May 14, 2009 at 8:35am

Here is some additional information about the program:


This new program offers 1st time home buyers the opportunity to recieve down payment and closing cost assistance if they meet the required guidelines and are purchasing within the applicable zip codes in Prince George's County.

The program is scheduled to be available on May 15th, but your mortgage must be fully approved with a ratified contract before it can be submitted to NSP for final approval.

The program could offer up from 3.5% of the purchase price up to $15,000 -up to- 7% of the sales price up to $20,000.
The particulars would all be dependent on the property location and the individual borrower.

Credit, debt ratios, and income all play a factor in qualifying the particular individual.

The particular property also must be a vacant foreclosure.

▶ Reply to This