Los Angeles Neighborhood Stabilization Program (NSP)

The City of Los Angeles Housing Department (LAHD) has started to offer a purchase assistance financing to eligible low- and moderate- income homebuyers seeking to purchase a foreclosed home in a NSP Priority Area in the City of Los Angeles. The first step should be a buyer to get pre-qualified by a Participating Lender (In case you didn't know I am one of those Participating Lender) Visit my website The city will not allow reservations from non participating lenders. Then hire a Real Estate Agent to help you search for eligible properties. Then just read below for the rest.

How do you qualify for the NSP? 1. The property must be foreclosed

2. Property must be vacant at time of listing

3. The property can be any type of permanent residential dwelling unit, such as detached single family structures, townhouses, condominium units

4. Properties must be appraised by a state certified residential or general appraiser. The appraisal must be done within 60 days of the final offer to purchase.

5. When buying foreclosed homes from lenders or other mortgagees, the purchase price must be at a discount from the appraised value. HUD requires that the home buyer must seek the “maximum reasonable discount” from the seller. The minimum discount is 5% for each NSP property.

6. Properties must be located within an NSP Priority Area of the City of Los Angeles. Please visit the Los Angeles Housing Department’s (LAHD) website atto view maps of the NSP Priority Areas and to determine whether the house is in an eligible area.

7. Households whose incomes are at or below 120% of area median income are eligible for this program. The following chart shows the maximum income limits.

8. Home buyers must not presently have an ownership interest in any real property.

9. Home buyers must attend and complete an eight (8) hour Homebuyer Education Class certified by HUD that is taught by one of LAHD’s approved home buyer education providers. (see the end of the blog)

10. Home buyers must occupy the property as their primary residence.

11. At its own expense, LAHD will inspect every property to be purchased under this program and determine if rehabilitation repairs are required. If repairs are required, LAHD can provide a loan up to $50,000 for those repairs. Homes requiring rehabilitation that is estimated to cost more than $50,000 are not eligible.

Side Note LAHD APPROVED HOMEBUYER EDUCATION PROVIDERS All Applicants applying for the LAHD Purchase Assistance Programs are required to attend an eight (8) hour homebuyer education course given by an LAHD Approved Homebuyer Education Provider. ACORN 2010 Wilshire Blvd., Suite 604 Los Angeles, Ca 90057 (213) 484-1475 Languages: English and Spanish Website: www.acornhousing.org

Korean Churches for Community Development (KCCD) 3550 Wilshire Blvd., Suite 922 Los Angeles, Ca 90010 (213) 955-1500 Languages: English and Korean Website: www.kccd3300.org

New Economics for Women (NEW) 303 South Loma Drive Los Angeles, Ca 90017 (213) 483-2060 ext. 106 Languages: English and Spanish

East LA Community Corporation (ELACC) 530 South Boyle Avenue Los Angeles, Ca 90033 (323) 269-4214 Languages: English and Spanish Website: www.elacc.org

LA Neighborhood Housing Services (LANHS) 3926 Wilshire Blvd., Suite 200 Los Angeles, Ca 90010 (213) 381-2862 Languages: English and Spanish Website: www.lanhs.org

Shalom Center 2975 Wilshire Blvd., Suite 415 Los Angeles, Ca 90010 (213) 380-3700 Languages: English and Korean Website: www.shalomcenter.net Website: www.neweconomicsforwomen.org

West Angeles Comm. Dev. Corp. (WACDC) 6028 Crenshaw Blvd. Los Angeles, CA 90043 (323) 751-3440 ext. 29 Languages: English Website: www.westangelescdc.org