Accounting News and Notes

$14,000 Georgia Dream NSP Down Payment Program

Homebuyers should begin planning now to take advantage of Georgia Dream NSP Down Payment Program included in the recently enacted Housing and Economic Recovery Act of 2008 (HERA). The program was created to encourage the purchase of foreclosed properties in Georgia from federal funds received by the Georgia Department of Community Affairs.

The NSP Purchase Program

• Applies to foreclosed homes purchased on or after April 1, 2009 and before June 30, 2010.

• $14,000 is available for eligible borrowers for required repairs and/or down payment assistance

• Funds are disbursed in the form of a second mortgage lien with no interest and no monthly payment

• The lien is released over a period of five years and six months.

• Available in conjunction with FHA and VA loan only.

Homebuyer Qualification

All homebuyers are eligible for the program who purchasing a home as a primary residence who meet the criteria. Buyers are required to complete eight hours of pre-purchase counseling from an approved HUD-approved housing counseling agency. This incentive is not limited to First Time Home Buyers like the $8,000 Tax Credit. If the borrower is a First Time Home Buyer, they can use both the $8,000 Tax Credit along with the $14,000 Purchase Program if they meet all requirements of both programs.

Eligible Counties

The Department of Community Affairs determined the areas of greatest need in Georgia based on requirements of the Section 2301(c)(2) of HERA. All of the counties in the Atlanta Metro areas are eligible. There are several counties not eligible for the program primarily located in south and east Georgia. For a map of all eligible counties, please contact The Bearland Group directly.

Income Limits

There are income limits for the program based on family size and location of the property. The limits are based on the FY 2008 Income Limits for 120% of HUD Median Income. An example of the income limits for a family of four purchasing a property in Fulton County, would be a total household income of $85,450. All household income is used to determine the eligibility even if the spouse or family member is not included on the mortgage. For income qualification of this requirement, please contact The Bearland Group directly.

Purchase Discount Requirements

To be eligible for the incentive, the purchase price must be discounted by 15% of the current market value of the home as determined by an appraisal. An appraisal for the purposes of determining this statutory purchase discount is required.

Recapture

If the property is sold, refinanced or is not occupied as the Borrower’s primary residence during the first five years and six months, a repayment is required based on a schedule ranging from 100% down to 20%. An example, if the property is sold in the 31st month, 60% of the $14,000 would have to be repaid. To read more visit http://www.dca.state.ga.us/housing/Homeownership/programs/gadreamnspdownpayment.asp

The Bearland Group is eligible to offer this program along with 203K FHA loans if repairs are required. For additional mortgage information including free pre-qualification, please feel free to call Stephen Gowen at 770-886-7786 ext 3, or by email at sgowen@thebearlandgroup.com. Their office is located at 407 East Maple Street, Suite 108, Cumming, GA 30040. Website: www.thebearlandgroup.com GA  Discover the

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