Neighborhood Stabilization
Click here for the DCA State NSP1 Closeout Final Quarterly Performance Report #60
What is NSP?
In 2008 and 2011 Fulton County received Neighborhood Stabilization Program funds from the United States Department of Housing and Urban Development and the Georgia Department of Community Affairs in an effort to stabilize the decline of neighborhoods due to a rise in the foreclosure rate. These rounds of funding authorized through the Housing and Economic Recovery Act of 2008 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 were used to purchase foreclosed or abandoned properties and to rehabilitate, resell, or redevelop for income eligible homebuyers in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.
What are the General Requirements of NSP?
Eligible Homebuyer
Eligible families can earn up to 120% of the area median income (AMI), based on number of persons living in the household. In determining gross household income, all family members over the age of eighteen (18) are considered, as well as other sources of income.
Program Eligibility
- The home must be the primary residence of the buyer.
- Homebuyers must qualify for private mortgage financing in order to purchase one of these homes. Borrower must demonstrate creditworthiness. Additional financial assistance may also be available as needed.
- Homebuyers must complete at least 8 hours of pre-purchase housing counseling, with at least 2 hours of face-to-face counseling from a HUD- approved counseling agency.
What are the Characteristics of NSP Program Requirements?
The Fulton County NSP Homeownership Program provides homeownership to eligible low-moderate income residents that purchase NSP designated homes in south Fulton County, Georgia, outside the city limits of Atlanta. Through the Fulton County Homeownership Programs, Fulton County helps homebuyers who otherwise might not qualify for mortgage loans from private lending institutions at prevailing rates and terms, but who can qualify with the special programs that are offered by the County. This Chapter describes the requirements of Fulton County’s NSP Initiative for compliance purposes. The homebuyer must purchase a Fulton County NSP property held by a Fulton County NSP Developer.
Homebuyer Education
1. Eligible homebuyers must complete the NSP required eight-hour home-buying counseling from a HUD approved agency, contribute a minimum of 50% of the down payment required by the lender, and secure a thirty (30) year, fixed rate, amortizing loan from a lender.
2. Eligible homebuyers’ housing ratio, also known as front end ratio and defined as total monthly gross income divided by cost of monthly housing expenses (Principal, Interest, Taxes, HOA dues, and Insurances), cannot exceed 31%.
3. Eligible homebuyers’ debt-to-income ratio, also known as back end ratio and defined as total monthly gross income divided by total monthly recurring expenses (Mortgage payment, car payments, student loans, credit card payments, child support payments, alimony payments, and legal judgments), cannot exceed 43%.