NSP2 First-Time Homebuyer Assistance Program

The City of Long Beach has proposed and HUD has approved a technical amendment to its NSP2 Action Plan. The purpose of this amendment is to allow the City to conduct an acquisition-rehabilitation-resale activity. To view this technical amendment request, please click here.

ATTENTION: On November 21, 2011, the City announced the re-launch of the NSP2 Program. Due to limited funding availability and the overwhelming response to the NSP2 re-launch, the City of Long Beach is no longer accepting Phase I applications for the NSP2 Program effective immediately (as of Monday, March 5, 2012).

Your First Home Is Just A Few Steps Away

The City of Long Beach is partnering with select local lenders and realtors to bring you the Neighborhood Stabilization Program 2 (NSP2) a First-Time Homebuyer Assistance Program.

The City of Long Beach is partnering with select local lenders and realtors to bring you the Neighborhood Stabilization Program 2 (NSP2) a First-Time Homebuyer Assistance Program.

WHAT PROPERTIES ARE ELIGIBLE?

Foreclosed single-family detached homes or condominiums located within an eligible NSP2 area. Click here to view the NSP2 project area map

DO YOU QUALIFY FOR THE NSP2 PROGRAM?

If you're a first-time homebuyer, through NSP2 you may qualify for a second silent mortgage loan of up to $97,000 to assist with the purchase of a foreclosed, single-family home in the City of Long Beach. Plus, you may also qualify for up to $30,000 in grant funding for code-related repairs, energy-efficiency home enhancements and $10,000 in closing cost assistance. Rehabilitation grant amounts will be determined based on a work write-up prepared by the City.
  • Foreclosed single-family detached homes or condominiums located within an eligible NSP2 area.
  • Applicant may not have owned a home in the last three years.
  • Applicant must attend and complete an 8-hour Homebuyer Education Class.
  • Borrower must occupy the property as their primary residence.
  • The total projected annual adjusted gross income of all adults 18 years of age or older who will be living in the home must be at or below the limits shown in the table below.

2012 NSP2 Program Income Limits

Income
Category

1
Person

2
Person

3
Person

4
Person

5
Person

6
Person

7
Person

8
Person

Very Low
Income

$29,550

$33,750

$37,950

$42,150

$45,550

$48,900

$52,300

$55,650

Low Income

$29,551-
$47,280

$33,751-
$54,000

$37,951-
$60,720

$42,151-
$67,440

$45,551-
$72,880

$48,901-
$78,240

$52,301-
$83,680

$55,651-
$89,040

Moderate
Income

$47,281-
$70,800

$54,001-
$80,950

$60,721-
$91,050

$67,441-
$101,150

$72,881-
$109,250

$78,241-
$117,350

$83,681-
$125,450

$89,041-
$133,550


NSP2 SECOND MORTGAGE LOAN TERMS

Note: Fund reservations will be provided on a first-come, first-served basis after City has provided approval for program participation (Phase I approval) AND approval of buyer's NSP2 Property Inspection Request form.
  • Deferred, requires no monthly payments.
  • Equity Share applies to all loans. For example if a homebuyer receives a $50,000 loan from the City to purchase a home with a $140,000 sales price, the Equity Share percentage would be 36% ($50,000/$140,000). Therefore, upon sale, the $50,000 loan plus 36% of the home's appreciation will be paid to the City. Additionally, a percentage of the Equity Share is forgiven for every year that you maintain the home as your primary residence. The Equity Share percentage is 100% forgiven after 30 years.
  • NSP2 Loan is due on sale, title transfer, or first mortgage repayment.
  • Refinancing of first mortgage is allowed by the City under certain conditions.

NSP2 REHABILITATION AND CLOSING COST GRANT TERMS

  • Applicants are eligible to receive up to $30,000 in grant funds to pay for code-related repairs and energy efficient enhancements.
  • Applicants may be eligible to receive up to $10,000 in grant funds to pay for Closing Costs.
  • Grant funds to do not have to be repaid to the City.

DOWN PAYMENT REQUIREMENT

  • A minimum of one percent (1%) of the property purchase price is required as down payment.
  • The 1% must come from the Borrower's own funds which must be seasoned (in accounts) at least 60 days as evidenced in bank/asset statements.
  • Borrowers may be required to contribute more than 1% of their own funds towards the down payment to complete the purchase.

HOW DO YOU GET STARTED

STEP 1: FIND OUT IF YOU PREQUALIFY FOR A HOME LOAN AND THE NSP2 PROGRAM

  • Contact one of the City's NSP2 Select Lenders to get pre-approved for a first mortgage and the NSP2 Program. Click here to see the Select Lender list.
  • Once you have been pre-qualified, completed your application, and provided all required documentation, select Lender will submit application to City for review and approval of your participation in NSP2.

STEP 2: FIND YOUR HOME

  • Contact one of the City's NSP2 Select Realtors for assistance in locating a home that is right for you. Click here to see the Realtor list
  • Property will be inspected by the City to determine if repairs are needed.
  • If repairs are needed, you may qualify for up to $30,000 in grant funding for rehabilitation and energy-efficiency enhancements.

STEP 3: ESCROW

You're almost home! Once you've opened escrow on your new home, your NSP2 Select Lender will submit your mortgage assistance loan application to the City of Long Beach for review and approval.

Your lender and realtor will guide you through escrow and closing, until the keys are in your hands.


FIRST-TIME HOMEBUYERS' SEMINAR

As part of NSP2, you will be required to attend a HUD-certified First-Time Homebuyer Seminar. This 8-hour course may be taken at any time during the qualifications process.

Operation HOPE in Long Beach offers 2 Saturday classes a month. Each class is 4 hours long. Buyers must attend both to complete the required HUD-certified, 8-hour course. Those completing both classes will receive a certification of completion through the mail approximately one week later. For more information, contact Operation HOPE at (562) 218-5011.

8-hour HUD-certified homebuying counseling services are also available from a variety of providers throughout Los Angeles and Orange counties. For a list, click here. You may also search for additional HUD-approved Housing Counseling Agencies directly from HUD's website by clicking on the following link:

http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm


Frequently Asked Questions About NSP2


If you're ready to buy, we're ready to help


Contact an NSP2 Select Lender today to get started or call the NSP2 Hotline at (562) 570-6949 for more information.

Lender Information (Lenders only - Secure Area)
Click here to view Lenders Documents