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Georgia DreamNeighborhood Stabilization Program<br />www.dcaloans.com<br />
What is the Georgia Dream Neighborhood Stabilization Program?<br />Georgia Dream NSP is NOT the same as the conventional G...
  Contact a participating lender to begin the mortgage loan process </li></li></ul><li>What is the Georgia Dream Neighborh...
To qualify, buyers must:<br /><ul><li>  Be purchasing a foreclosed property for use as a primary residence
  Be purchasing in one of the “Areas of Greatest Need”
  Have a household income level which is less than specified limits
  Complete 8 hours of tuition
  Use a participating lender
  Sale price must be less than 85% of the appraised fair market value
Qualify for the home loan, just like everyone else</li></li></ul><li>Where are the Areas of Greatest Need?<br />The Depart...
  Cherokee
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Ga dream nsp

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Ga dream nsp

  1. 1. Georgia DreamNeighborhood Stabilization Program<br />www.dcaloans.com<br />
  2. 2. What is the Georgia Dream Neighborhood Stabilization Program?<br />Georgia Dream NSP is NOT the same as the conventional Georgia Dream Home Ownership Program. While the income limits will mean that fewer applicants will be able to qualify for this assistance, those who do qualify will be able to claim $14,000 in down payment assistance.<br />To apply, buyers must:<br /><ul><li> Complete eight hours of home-buyers education from a HUD approved housing counseling agency;
  3. 3. Contact a participating lender to begin the mortgage loan process </li></li></ul><li>What is the Georgia Dream Neighborhood Stabilization Program?<br />Effective April 1st 2009, the Department of Community Affairs and Georgia Dream unveiled a program to assist any home buyer in the purchase of foreclosed property in selected counties.<br />The program provides a $14,000 loan to buyers, which shows as a lien on the property. The first 20% of the loan is forgiven after 18 months of ownership, and 20% more is forgiven each year. After 66 months of ownership, the loan is completely forgiven and does not need to be repaid. <br />The interest rate for the $14,000 NSP loan is likely to be a couple of percent higher than the home loan. <br />Since the program is aimed at buyers purchasing foreclosed homes, eligible home loan packages include FHA 203(k) Streamlined Rehab Loans.<br />
  4. 4. To qualify, buyers must:<br /><ul><li> Be purchasing a foreclosed property for use as a primary residence
  5. 5. Be purchasing in one of the “Areas of Greatest Need”
  6. 6. Have a household income level which is less than specified limits
  7. 7. Complete 8 hours of tuition
  8. 8. Use a participating lender
  9. 9. Sale price must be less than 85% of the appraised fair market value
  10. 10. Qualify for the home loan, just like everyone else</li></li></ul><li>Where are the Areas of Greatest Need?<br />The Department of Community Affairs have defined the following areas as being among those in greatest need:<br /><ul><li> Barrow
  11. 11. Cherokee
  12. 12. Clayton
  13. 13. Cobb
  14. 14. DeKalb
  15. 15. Douglas
  16. 16. Forsyth
  17. 17. Fulton
  18. 18. Gwinnett
  19. 19. Hall
  20. 20. Jackson
  21. 21. Rockdale
  22. 22. Walton</li></li></ul><li>Where are the Income Limits?<br />The income limits are 120% of the HUD area median income. All income from all sources should be counted, including child support, alimony, disability, etc.<br />
  23. 23. How is the $14,000 Funded?<br />Right now, the DCA is asking lenders to provide the money, which the DCA will refund to the lender. The DCA will also provide lenders with a $900 NSP Origination Fee. <br />What Can the $14,000 Be Used For?<br />The money can be used for any repairs, and the whole of the remaining amount may be used for down payment.<br />The money may not be used for closing costs, appraisals, inspections, etc. <br />
  24. 24. What about Homeownership Education?<br />As with the traditional Georgia Dream Program, NSP applicants must complete eight hours of homeownership education.<br />Six of these hours will be group classroom lessons, with the final two hours being one-on-one tuition.<br />Be sure to sign up your buyer as soon as you know they’re looking at this program, classes fill up fast and buyers who have not completed this requirement before closing will not be granted the $14,000.<br />The complete list of education agencies is available online. <br />Go to www.dcaloans.com and find the link for “Find a Home Buyer Education Counselor”, located on the left of the page. Click the link to see a list of agencies available in Georgia.<br />
  25. 25. Who are the Participating Lenders?<br />Since the program means that buyers will have additional forms to file with their offers, and with their loan application, lenders must complete training to become eligible in the program. Lenders are different from county to county, but this is the list of Georgia Dream lenders:<br />AmericaHomekey Inc, <br />AME Financial Corporation,<br />Amerisave Mortgage,<br />Am Trust Mortgage,<br />Atlantic Southern Bank<br />Augusta Mortgage Co, <br />Bank of America<br />Bank of Lenox <br />Bank of Upson <br />Branch Banking & Trust Co, <br />Brand Mortgage Group<br />Briarwood Financial Services<br />Capital City Bank<br />CDC Federal Credit Union<br />CHI d/b/a NeighborWorks Columbus<br />CitizensTrust Bank<br />Colonial Bank<br />Cornerstone Mortgage,<br />Countrywide Bank,<br />Credit Union Financial Services <br />CTX Mortgage<br />Element Funding<br />Emory Federal Credit Union,<br />Family Bank<br />Fidelity Bank d/b/a <br />Fidelity Bank Mortgage<br />First Citizens Bank & Trust Co, <br />First Horizon Home Loan Corp, <br />First National Bank of Griffin<br />First National Bank of Waynesboro <br />First Service Mortgage<br />First State Bank<br />First Metro Mortgage<br />Flagstar Bank<br />FNB-South<br />Freedom Mortgage<br />Georgia Bank & Trust<br />Company of Augusta,<br />Georgia Coastal Federal Credit Union <br />Georgia Telco Credit Union<br />GMAC Mortgage<br />Guaranty Mortgage Services,<br />Heritage Bank of The South<br />Home America Mortgage<br />Infinity Mortgage Corp<br />Ironstone Bank<br />J P Morgan Chase Bank <br />MetLife Home Loans<br />Mortgage Counseling Services, Inc, Mortgage Investors Group<br />National City Mortgage<br />New South Federal Savings Bank <br />One World Mortgage Corp<br />Opteum Mortgage<br />Metrocities Mortgage<br />Northstar Mortgage Group<br />Oxford Capital<br />Palladium Mortgage<br />PHH Mortgage Corp, <br />Pine State Mortgage <br />Planters & Citizens Bank <br />Planters First Bank<br />Primary Capital Advisors LC <br />Primary Residential Mortgage <br />Prime Home Mortgage<br />Professional Lending<br />Queensborough National Bank & Trust <br />RBC Centura Bank<br />Real Estate Mortgage Network<br />Regions Bank d/b/a <br />Regions Mortgage<br />Security Real Estate Svc dba<br />Security Mortgage <br />Shelter Mortgage dba<br />Fairfield Mortgage <br />Southern Crescent Mortgage & Investment<br />SunTrust Mortgage <br />Synovus Mortgage Corporation<br />Taylor, Bean & Whitaker Mortgage Corp, <br />The Claxton Bank<br />The Coastal Bank<br />The Farmers Bank<br />The Mortgage Division, Inc, <br />The Security State Bank<br />Thomas County Federal<br />United Bank<br />UnitedCommunity Mortgage Services Unity Mortgage Corp, <br />Utah Financial Inc, <br />USDA Rural Development<br />W.R. Starkey Mortgage<br />Wells Fargo Bank<br />Wieland Financial Services, Inc.<br />For full details, go to: www.dcaloans.com<br />
  26. 26. Why does the offer need to be less than 85% of fair market value?<br />The appraisal must be carried out within 60 days of the binding agreement date – so if the property is bank owned, the appraisal carried out by the bank when it was foreclosed can be used, as long as it was within 60 days of the binding agreement. REO realtors should be willing to share that appraisal if you tell them that your client is looking at using the GA Dream NSP Program.<br />Most foreclosures are already priced at less than 85% of market value, so that’s usually not a big worry. <br />Now pay attention, since math works the way it works, the appraisal can’t just be for the sale price plus 15%.<br />You might think that a sales contract for $170,000 needs to appraise for $170k plus 15% (to get to 100%), which would mean that the appraisal would need to be for at least $195,500. <br />However, the sale price needs to be for 15% less than the appraisal value, and that means that the appraisal would need to be for at least $200,000 (because $170k is 85% of $200k.)<br />The appraisal needs to be for 17.7% more than the sale price, and the sale price needs to be 15% less than the appraised value. <br />
  27. 27. A Word of Warning<br />The $14,000 down-payment assistance is a loan. It must be re-paid if the buyer sells within 66 months of closing.<br />The DCA is a government agency. If the buyer is anything less than completely honest in the completion of their paperwork, or fails to disclose something that they ought to, the DCA will find out and will decline the $14,000 loan. <br />If the lender fails to submit all the necessary paperwork to the DCA, then the loan application will be delayed until all the paperwork has been received.<br />If the buyer fails to complete the required education, the application for assistance would be declined.<br />If the buyer doesn’t take up residence at the property as owner-occupier, the DCA will find out and demand immediate re-payment of the loan.<br />There are many hoops for buyers to go through, and a lot of things for realtors to learn. This guide should be a place to begin the discussion with buyers, and to encourage you to learn more about this exciting program so you can better advise your clients.<br />

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