COOK COUNTY NSP

NEIGHBORHOOD STABILIZATION PROGRAM

A homebuyer's 5-step program to purchase a Cook County NSP home.

Follow these simple steps to purchase a Cook County NSP Home.
Step 1:

Comply with NSP guidelines, including income qualifications.

Step 2:

Review the NSP property listings identifying the property interested in purchasing.
Step 3:

Select an NSP HUD-certified homebuying counseling agency and register for the required 8 hours of counseling at a date and location of your choice.
Step 4:

Apply for a mortgage pre-approval from a participating NSP lender or a lender of your choice.*
Step 5:

Complete the NSP application and ask your realtor to present the loan pre-approval, the NSP application, and your offer to the developer.

Neighborhood Stabilization Program

69 W. Washington Street, Suite 2900 Chicago, IL 60602 Phone: (312)602-1068 Fax: (312) 603-9856

* All lenders are subject to be NSP approved prior to homebuyer financing. If not approved this may create a delay in the buyer closing
up to the lending institution denying partnership with NSP.

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Cook County Neighborhood

Stabilization Program

n NSP Notice to Seller This notice is a statement that establishes that the transaction is voluntary and that the seller will not be entitled to relocation benefits; it also dictates that the property must be vacant at the time of contract. This notice is required to evidence compliance with the relocation and voluntary sale rules associated with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA). Income Worksheet

This Excel tool is to be used by the developer to determine initial income eligibility of applicants. The income thresholds are established by HUD annually. The current limits are listed in the homebuyer application. The
worksheet covers, assets (checking, savings, real estate, stocks, bonds, annuities, etc.) wages and

salaries.

child support, benefits, pensions, social security income, public assistance, and any other income. This tool will help to establish program eligibility and ability to maintain a mortgage. o Underwriting Analysis Tool

This tool is to be used by the developer to determine the amount of subsidy that required from the NSP program to make the mortgage affordable for the applicant. The total subsidy amount shall not exceed $50,000 per application. o Purchase Contract with Developer Only applicants who have a purchase contract with the developer may submit applications for ass tance. A copy of this purchase contract will be included with the package. The down payment minimum is 1,000 that must be provided is cash as "earnest money" from the buyer (no gifts are permitted). o Commitment letter from Bank for First Mortgage ortgage xceed the

Only homebuyers with an approved first mortgage are eligible to apply for assistance under Cook ountv's NSP program. The mortgage approval does not have to be for the full amount of the sales price. commitment program. First mortgage must be a conventional 30 year term loan and the interest rate may not current FHA rate by more than two percent. o Appraisal The sales price for an NSPassisted unit is the lower of total NSP investment or market value of th the sales price of the unit has been established according to NSP regulations. unit. Market value is established by an appraisal. The appraisal is a required part of the application to e sure that letter is required to establish the amount of subsidy needed by the home buyer thro gh the

Income Verification

Source Documents

The income verification source documents checklist is included as part of the homebuyer applicat on. Source documents need to be collected and used for initial income determination County as part of the official NSP income verification. by the developer. The e ook documents need to be submitted with the developer application package and will be used by the

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Cook County Neighborhood
Overview of Homebuyer

Stabilization

Program

Assistance Requirements

The Neighborhood neighborhoods

Stabilization

Program (NSP) utilizes Federal stimulus funds to stabilize Cook County to rehabilitate or redevelop for income

by acquiring vacant and foreclosed properties

eligible home buyers.

Buyers will be required to meet a number of program requirements:

First, your household must be income eligible. Household income is based on the number of people living in your house. For a family of four, for instance, the household income may not be greater than $90,100;

You do not have to be a first-time three years;

homebuyer,

but you cannot have owned a home in the last

You must to be able to qualify for a 30-year "fixed rate" mortgage from a lender. The NSP program will assist to reduce the cost of the home by assisting with closing costs and secondary loans based on each household's needs. First mortgage interest rate may not exceed the current FHA rate by more than two percent;

All buyers must complete 8 hours of homeownership

counseling

by a HUD certified housing

counseling agency - this is provided at no cost to the homebuyer; Homebuyers will be required to maintain the unit as their principal residence duringf an affordability period, affordability periods will range from 5-20 years based on the amount of

assistance; If the home is sold during the affordability

period a portion of the NSP assistance wi~ need to be

repaid if there are sufficient proceeds from the sale.

Income Eligibility Applicants for NSP-funded homeownership limits.

Limits to be income eli~ ible before

assistance must be determined

being approved for assistance. The following chart provides the current Cook County house old income

Household Size 120% AMI

1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Pers n 8 Person

$63,650

$72,750

$81,850

$90,950

$97,350

$105,500

$112,.00

$120,050

HUO FY 2010 Income Limits

Sale Price of Homes and Buyer Subsidy All NSP homes will be newly constructed value. or fully rehabilitated and will be sold at the current market rice and the home

Buyers will need to qualify for a private mortgage for some portion of the purchase

the NSP program will provide the balance of funding based on the assistance needed to mak

affordable for the individual buyer. The total maximum amount of assistance from the N5P rogram is $50,000.