Christa Michael

If you're looking to buy a home, there is money out there to help you. The new Neighborhood Stabilization Program could prove to be a huge asset.

It's always been a dream for Catrina Schindler. Schindler has been seriously looking to buy a modest home for four years. But like so many others, the timing, the pricing was always out of reach -- until now.

"And there are great incentives and great programs, from what I understand like this one, that will help reduce the housing price," said Schindler, who is a school social worker.

The Neighborhood Stabilization Program (or NSP) has quickly caught the attention of Schindler and thousands of other potential homeowners.

Under the stabilization plan, families can buy abandoned and foreclosed homes at a discount and with a huge bonus. If the home happens to be in high foreclosure area, you could get $14,000 that can be used for your down payment or to renovate your home. And that's just at the state level from the Georgia Department of Community Affairs.

Homeowners could qualify for even more money at the county level. Each county is still in the process of formulating their own guidelines and how they will distribute the NSP funds. How much qualfied homeowners could receive depends on the individual, their credit, their income, the cost of the home, and the county they live in.

But if you think you make too much to qualify, think again.

If you're single and earn around $60,000, you may qualify.

"In the NSP, it reaches up to 120 AMI (average median income), which for a family of 4 may be up to $86,000, a family a 6 up to $99,000 worth of income," said Interim Director for the Department of Housing Melvin Richardson. "So we're reaching not only low to moderate income households, but we're also now able to serve and assist medium and middle family incomes."

And unlike other homebuyer assistance programs, you don't have to be a first-time homebuyer.

But if you are, you still qualify for the $8,000 federal tax credit. What's more, you can apply and receive additional funds from other county or city homebuyer programs, and "layer" the savings.


"And when you say "layering," there are so many programs that are available. What layering does is it allows you to reduce the principal amount of the property, where the homeowner would only be responsible for the mortgage they qualify," said Patrice Duncan, Vice President of a housing counseling agency D&E Power Group.

"For me, this has been a dream," said Schindler. "To buy a home is a dream for me."

Homebuyers can also look to save more by combining the program's down payment assistance with low-interest FHA and VA mortgages.

But in order to even qualify for the neighborhood stabilization plan, families must receive six to eight hours of housing counseling from a HUD approved agency

Don't be afraid of buying a HUD home! They are, in general, really good deals. To speak with an agent that has been trained in HUD homes since 1999, contact Christa Michael at 770-59... or cmsellsga@gmail.com. Don't forget to ask about the $100 Down HUD home!

"IF A WINDOW OF OPPORTUNITY APPEARS, DON'T PULL DOWN THE SHADE." Tom Peters. And last week, the Fed saw their regularly scheduled meeting as a window of opportunity to make a blockbuster announcement.

On Wednesday, the Fed announced that over the course of 2009, they will purchase an additional $750 Billion of Mortgage Backed Securities, as well as $300 Billion in long-term Treasuries, primarily to help shore up the housing market and keep home loan rates low. On the announcement, Bonds exploded higher, leaving Bond prices within whiskers of the best levels ever.

However, it's important to understand that while their actions may keep a lid on rates moving higher, they may not cause them to move dramatically lower... more on this in the Mortgage Market View article below. Additionally, due to many understaffed lenders and investors currently working at maximum capacity, we could once again see that improvements in Bond pricing may not all be passed through to our rate sheets.

Another factor that could impact whether Bonds and rates see significant improvement ahead are concerns of future inflation - the arch enemy of Bonds and home loan rates - brought on by all the recent aggressive moves by the Fed. While we know there is little inflation at the present time, the chatter of future inflation could have a negative impact on Bonds and home loan rates, or at least stifle any improvements.

Although the media is already spinning it differently, this is not a time to stay on the fence, hoping and waiting for lower rates. Home loan rates remain within inches of all-time historic lows, but may not necessarily move significantly lower based on this purchasing plan - waiting is a very risky move.

More good news last week, as Housing Starts for February came in better than expected and actually increased for the first time in eight months. In addition, Fed Chairman Bernanke stated the recession should end in 2009 and that he is confident of the long-term outlook for the US economy.

Also, an update on Mark-to-Market - the accounting rule which has had a devastating impact on the financial markets - which we have discussed many times, including in last week's issue. The Financial Accounting Standards Board (FASB) agreed that it will propose to allow companies to use more "leeway" in applying the accounting rules they use to value their assets, and planned a final vote for April 2nd. If this rule change is approved, it could result in better first-quarter financial statements for companies that have been affected by this rule. Stocks have been moving higher lately in the hopes that Mark-to-Market will be fixed, and a resolution could help Stocks further improve. Christa Michael 770-598-7771