Georgia Dream NSP Overview

This program, which gives $14,000 in purchase assistance, is offered exclusively to home buyers of foreclosed properties. The program is unique in that you do NOT have to be a first time home buyer to be eligible, although you DO have to occupy the property within 60 days of closing.

This program is IN ADDITION TO THE $8,000 tax credit (which is for first time home buyers only, or those home buyers who have not owned a home in the last 3 years).

The program began on April 1, 2009 and all funds must be disbursed (if they have not already) by June 30, 2010. There are some requirements for eligibility, and some information you'll want to know:

Must be in an approved area. Click here for a link to the map which shows which counties are eligible.
Must be an FHA or a VA loan through the Georgia Dept of Community Affairs
Your lender must be on the approved list for the Georgia Dept of Community Affairs. Click here for a link to a map which will allow you to select an eligible lender.
If your property requires repairs, you must use a lender who is approved by the Georgia Dept of Community Affairs to handle 203k loans. As of March 15, 2009, here are the eligible lenders:

*Allied Home Mortgage Capital Corp
*Brand Mortgage Group LLC
*Colonial Bank
*Cornerstone Mortgage Company
*Countrywide Bank FSB
*First Service Mortgage Inc
*Flagstar Bank FSB
*Freedom Mortgage Corporation
*Mortgage Counseling Services, Inc
*New South Federal Savings Bank
*Pine State Mortgage Corporation
*Shelter Mortgage Company, LLC
*Taylor, Bean & Whitaker Mortgage Corp
*United Bank
*Wells Fargo Bank

Deborah Simmons, at Wells Fargo, is a good contact. Her number is 770-486-2622.

You must take a home buyer education class in person.
There are income limits, so you will not be eligible for this program if you make over a certain amount. The amount depends on what county the property is in and the number of members of your family who will occupy the home. Click here for a link to the income limits spreadsheet.
You must occupy the home within 60 days of the date of closing.
The $14,000 is a NO-PAYMENT loan that is completely forgiven after 5 1/2 years. If you sell the property or refinance before that time is up, you'll have to pay back some, most, or all of the funds (depending on how long you've been in the house).

Just a Little Reality Check on the Georgia Dream NSP Program

This program is not for the faint of heart, meaning you shouldn't even TRY for it if

you have to move in fast
the property value is questionable (you'll pay TWO appraisal fees and one of those can be before you even know you're under contract!)
you won't be an owner occupant in 60 days or less of closing on the property
the property isn't already a foreclosure (no short sales, resales, etc)
you were thinking of using a lender who is not on the approved list (it's short for a reason)
you're thinking you'll be selling the property in 3 years or less (recapture tier set for full forgiveness at 5.5 years)
you don't like roller coasters or are a very impatient person. Remember, this program is BRAND NEW as of April 1, and it will take some time for the approved lenders, the realtors, and the Dept of Community Affairs to get "in sync".

With that having been said, if you want some of the Federal assistance for foreclosures, make sure you discuss this with your lender!

Click here if you want to go to the Georgia Dept of Community Affairs site on this subject.

Posted by Jackie Campbell on April 10th, 2009 5:49 PMPost a Comment (0)