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LEGISLATIVE ALERT - August 11, 2010

SEPTEMBER 10, 2010 NSP APPLICATION DEADLINE
FOR BORROWERS WITH INCOME AT OR BELOW
50% OF THE AREA MEDIAN

All applications for borrowers with income at or below 50% of the
Area Median must be submitted by September 10, 2010.

Funding will be awarded on a first come first completed basis and
MAY BE DEPLETED PRIOR TO THE SEPTEMBER 10, 2010 DEADLINE.

When funds are depleted, for applications received by the September 10, 2010 deadline, NSP will establish a waiting list, for funding allocation in the event that previously funded applications fail to close.

Because funds are awarded on a first come first completed basis, NSP does not guarantee funding for applications received by the September 10, 2010 deadline, or for applications placed on the waiting list.

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GUIDELINES FOR REMAINDER OF NSP APPLICATION PERIOD:
INCREASED LOAN LIMIT OF UP TO $60,000 FOR HOUSEHOLDS
AT OR BELOW 50% OF THE AREA MEDIAN INCOME LEVELS ONLY

To increase housing affordability for applicants at or below 50% of the area median income levels, a NSP loan limit of up to $60,000 is available for down payment and closing costs assistance to purchase foreclosures in all 33 NSP eligible zip codes. The following new guidelines will apply until the September 10 , 2010 NSP Application deadline or until funds are depleted.

APPLICABLE ONLY TO HOUSEHOLDS WITH INCOME AT OR BELOW LEVELS OUTLINED BELOW
2010 Income Levels
Effective 5/14/10

	Very Low Income
	50%
1-Person Household	$36,250
2-Persons Household	$41,400
3-Persons Household	$46,600
4-Persons Household	$51,750
5-Persons Household	$55,900
6-Persons Household	$60,050
7-Persons Household	$64,200
8-Persons Household	$68,350

REQUIREMENTS

1. Up to $60,000 per household (note that $60,000 is not automatic). The amount approved is what will be needed to achieve requirements for back end ratio, and minimum LTV for 1^st Trust.
2. Maximum back end ratio 45% - no exceptions, no compensating factors
3. Minimum LTV for the 1^st Trust loan is 65%.
4. Maximum of 2 points, including loan origination
5. Additional points up to a total of 4, including loan origination, approved only if buy down of rate is documented.
6. Minimum applicant contribution of $1,000
7. 15 year primary residency requirement
8. 15 year loan term
9. 0% interest, deferred payment

REPAYMENT REQUIREMENTS

Length of Time Purchaser Retains Home as Primary Residence	Balance Due (As % of Total DPCCA Loan Received)
Less than 5 years	100%
At Least 5 years but less than 15 years	70%
15 or more years	50%

If you have any questions, please contact Rosalyn B. Clemens, NSP Program Manager at 301-883-3288 or Yetta Stokes, NSP Senior Loan Processor at 301-883-7409 or HStokes@co.pg.md.us.

NSP FORMS AND DETAILS AVAILABLE
IN PGCAR.COM MEMBER'S ONLY >>

 
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