New National Stabilization Program (NSP) could mean free money for your home purchase

Free money for your new home purchase? If you are buying a Phoenix foreclosure property there could be free money for you as long as you qualify. Under the new National Stabilization Program, if you combine it with an FHA loan not only could you get into the home with less money down, you could save tens of thousands off your mortgage.

You may also hear this called a 1% down FHA loan. FHA guidelines still require 3.5% down, but when combining the FHA and NSP program, you could indeed get into the home for only 1% down up front.

So what are the details and qualifications of the National Stabilization Program?

  • You must use a qualified lender.
  • You must attend an eight-hour class which will counsel you on purchasing a home.
  • You must be purchasing a bank owned foreclosure.
  • The property must be used as a primary residence. If you already own a home that home must have been leased for at least 12 months before applying for this program.
  • You must meet FHA debt-to-income ratios.
  • You can purchase the home with cash, which means you would get up to 22% off the purchase price as a silent second.
  • You must be approved for the program prior to submitting an offer on a house.
  • Maximum purchase price in Maricopa County is $346,250.
  • You must meet income requirements (see below).

Maximum income to qualify in Maricopa County

Family of 1   $55,350
Family of 2   $63,250
Family of 3   $71,750
Family of 4   $79,100
Family of 5   $85,400
Family of 6   $91,750
Family of 7   $98,050
Family of 8+  $104,400

How the NSP works:

  • You can receive free money for up to 22 percent of the purchase price.
  • All loans are zero percent interest with no monthly payments.
  • The balance of the loan is forgivable at compete of the the term.
  • All loans are forgivable after a period
    • 5 years for assistance of $15,000 or less
    • 10 years for assistance between $15,000 and $40,000
    • 15 years for assistance of more than $40,000

The program acts as a silent second mortgage on your home and once you meet the timetables above the loan is forgiven. If you do sell early the loan needs to be paid off, but is interest free.

For more details contact a lender or visit