Nov. 9, 2011

Foreclosed homes in the city of Phoenix are being purchased and occupied by excited new homeowners thanks to Phoenix’s Neighborhood Stabilization Program (NSP) funded by the U.S. Department of Housing and Urban Development (HUD).

In the last two years, 188 families have purchased foreclosed homes in Phoenix using federal funds available through the city’s Homeownership Assistance Program (HAP), thus reaching the city’s goal for the HAP program well ahead of the March 2013 funding deadline. 

The program allows first-time homebuyers to purchase vacant, deteriorating homes in order to improve neighborhoods impacted by the foreclosure crisis. The majority of the buyers purchased homes in the areas of the city that were hit the hardest by foreclosures.  

“Because of the Homeownership Assistance Program, I was able to purchase a wonderful home near my sons’ school,” said Mary Lee Sanders, a single, working mother and now, a new homeowner. She explained that even with a steady job and income, she probably would not have been able to save enough money for a down payment without the program’s offerings.

The Homeownership Assistance Program offers a $15,000, zero-percent interest loan for a down payment and closing costs to purchase a foreclosed home in Phoenix.  To be eligible, the buyer must agree to live in their newly purchased home as their primary residence, making investors ineligible for this program. The homebuyer then pays back the interest-free loan when the home is sold or refinanced.

Eligible homebuyers are encouraged to complete eight hours of homebuyer education and a one-on-one household budget/credit assessment from a HUD-certified housing counselor, where the homebuyer is guided through the entire process from budgeting and preparing them for future expenses.

“This program provides an excellent opportunity for interested homebuyers to be successful homebuyers. The financial education offered through this program is invaluable, especially to new homebuyers," said Councilman Tom Simplot, chairman of the City Council Housing and Neighborhoods Subcommittee.  "It's a win-win for the city because it breathes new life to neighborhoods that have been hit hard by the increase in foreclosures.” Simplot adds that neglected homes are often given a facelift, bringing the vibrancy back in Phoenix neighborhoods.

Due to popular demand of the Homeownership Assistance Program, Phoenix is adding a very limited number of eligible families into the program. For more information, interested homebuyers should call the NSP hotline at 602-262-6602 or visit the NSP website at phoenix.gov/nsphome.
 

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