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)

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Lenders Not Approving $14,000 Down Payment Program

April 23rd, 2009 10:15 AM

As I understand it, Lenders are having extreme difficulty getting the $14,000 Downpayment program from the Georgia Dept of Community Affairs through. I stated in my previous blog that this was not for the faint of heart, and this flaw in the process makes that even more true.

The bottom line: You should TRY for this program, but not DEPEND on it.

Posted by Jackie Campbell on April 23rd, 2009 10:15 AMPost a Comment (0)

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APPRAISALS AND BPOS: Do you adjust your opinion of value based on what type of sale it is?

April 8th, 2009 8:22 AM

I never adjust value based on motive, so my opinion of value does not change if the property is being sold because it a short sale, a foreclosure, a corporate relocation, or just somebody who wants to sell their home. The value of a property is what the market says it is.

I'm oversimplifying, as you probably know, but it usually all boils down to three things: location, condition, and size. Price-per-square-foot within a certain area is KING, and bear in mind that appraisers must use the most recent comparables when doing their analysis.

That's not to say that I don't have compassion for the people who are caught in a "distress sale" situation. In fact, just the opposite: I am concerned for them and their families, and do my best to find ways that I can help them, above and beyond my official role as real estate advisor. I can tell that there are other agents out there with the same passionate desire to help, too. Unfortunately, our wish to do a good job for our clients doesn't change the value they'll likely get on a BPO (Broker's Pricing Opinion) or appraisal.

Posted by Jackie Campbell on April 8th, 2009 8:22 AMPost a Comment (0)

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