Gwinnett Neighborhood Stabilization Program (NSP)

The Gwinnett Neighborhood Stabilization Program (NSP) was created to help slow the decline of neighborhoods where housing values

 and conditions may deteriorate due to the presence of foreclosed homes.

The county will acquire the foreclosed properties, perform the necessary repairs and bring the home to the market through a real estate brokerage.

A second objective of the Gwinnett NSP is to provide affordable housing to eligible low, moderate, and middle income homebuyers. Please see below of whether or not you will fall in these categories.

To address the foreclosure problem, the County will use NSP funds to purchase vacant foreclosed homes in targeted Census Tract Block Groups – within the county’s border - make necessary repairs on the homes, and resell the houses to new homebuyers.

Please Notice: This is NOT a program for those who still own their homes and are going to the difficult process to have their homes foreclosed. Unfortunately Federal law will not allow the County to provide foreclosure prevention assistance from NSP funds.

How does it work?

Gwinnett Neighborhood Stabilization Program (GNSP) offers great opportunity to individual and families of low and moderate income to homebuyer that otherwise would have challenges to qualify for a home loan. [Please see figures for income limits below].

Homebuyers must be pre-approved with a regular FHA or VA 30 year fixed rate mortgage loan and must also meet income eligibility requirements set by HUD.

The financing must be via a FHA loan which customarily requires at least 3% down payment – however homebuyers using GNSP will need only 1% (one percent) of the purchase price for down payment.

Veterans may be aware that through their service they have earned the benefit of attaining a VA mortgage loan which allow the veteran to purchase a home with zero down …if the veteran so desires!

However, nothing prevents the veteran from putting some percentage of his/her own money towards the down payment – in this case you will insure to receive a grant that will be more than 10 times the down payment.

Please notice that the VA does NOT give any money! What the benefit the veteran receives is a “guarantee” up to 25% of the purchase price …which is to say, heavens forbid, the veteran defaults on the loan, VA will pay that portion (up to 25%) to the lender.

So, a modest payment of 1% at closing is a very well justified request - on my humble opinion – to receive ‘free money’ of a sum of $14,500 or even up to $22,500 for those thhat need the most. (Please read more details below)

Gwinnett Neighborhood Stabilization Program Offers Two Choices:
 
I)  $22,500 for 10 years at zero interest rate and no payments of the principal. Also the principal will be reduced 10% every year homebuyers stay in the home.

Or

II)  $14,500 for 5 years at zero interest rate and no payments on the principal.  In this instance the grant will be reduced 20% every year that homebuyer stays in the home.

Who can qualify for Gwinnett County NSP?

Gwinnett Neighborhood Stabilization Program is designed to provide down payment assistance to individuals or families with low, moderate, and middle income homebuyers may be eligible to purchase the NSP homes.

Qualified homebuyers may receive up to $22,500 in financial assistance towards the purchase of a home within Gwinnett County.

To qualify as a homebuyer, you must NOT currently own any residential property and that includes rental housing or vacation home.

Furthermore, there are other requisites that you must fulfil also include all the items below – please note that all items must be met:

 I) Qualify for a 30-year, fixed-rate mortgage [FHA or VA], AND
II) Complete an eight-hour HUD-approved homebuyers course(*1), AND
III) Homebuyers will have to put – at least – 1% (one percent) of their own money towards the purchase price of the home, AND
IV) Will occupy the home as your principal residence, AND
V) Meet the income limits below

Gwinnett Neighborhood Stabilization Program (NSP) Income Limits

As I point out in many of my other pages about DPA grants, there are income limits for applicants to receive a Gwinnett Neighborhood Stabilization Program as well.

The most recent limits listed are listed below - which are for the fiscal Year 2014.

Please Notice: These figures are subject to change by HUD which may change them each fiscal year. When you call I can give you an update – if any happens in between.

Household Size          Low Income 
       1                           $22,500
       2                           $25,800
       3                           $29,000 
       4                           $32,200
       5                           $34,800
       6                           $37,400
       7                           $39,950
       8                           $42,500

Household Size       Mid/Moderate Income
       1                           $54,029
       2                           $61,740
       3                           $69,452
       4                           $77,115
       5                           $83,323
       6                           $89,591
       7                           $95,690
       8                           $101,850
(*1) In Gwinnett County, classes are offered by The IMPACT! Group.
For more information, visit www.theimpactgroup.org or call 678.808.4477

This seems the preferred agency for Gwinnet County – however there are other as well, please contact me for additional alternatives if this one is not convenient for you.

Homebuyers Must Live In The Home

As it is true to the many grants I have written elsewhere in this site, a homebuyer who receives a grant must use the home that was purchased with a grant from Gwinnett Neighborhood Stabilization Program – must use that home as his/her primary residence

…at least for the duration of the terms of the grant …which is to say 5 or 10 years.

If the homebuyer has to move – for any reason – the home cannot be rented!

The good news is that the eventual sale will net the homebuyer the percentage portion equivalent to 10 or 20% (depending which program that homebuyer got in) per year lived in the house.

Example: if a homebuyer lives in a home for 5 years and s/he got a 10 year term $22,500 grant, then s/he will be able to keep $11,250 for her/himself …the other $11,250 will have to be returned to the Gwinnett Neighborhood Stabilization Program

Please notice that the name of the program is Neighborhood Stabilization - accordingly, this is NOT for people that would be in-and- out “in a flash.”  The goal is ‘stabilize’ …it is for people who want to set roots!

Investor will NOT qualify – this is a program designed exclusively for owner occupied homes!

One potential ‘weakness’ with the Gwinnett NSP

Be aware that there is one potential ‘weakness’ with this program: There aren’t many homes available … and they may sell quickly!

The county has first to find foreclosed homes that the program agrees to buy and rehab - then resale them to the public… 

All other homes that are currently up for sale do NOT qualify to these types of grants

So, apply early ...and be patient!

Getting The Ball Rolling

Please contact me at your earliest opportunity and I will be glad to assist you. 

I have extensive knowledge of what takes to get a home buying grant and I will guide through the process and make sure to get answer from the program and bring it to successful conclusion. 

I will assist you in qualifying for a loan and selecting a home.

I have contact with several lenders who provide the required FHA loans and I can put you in touch with them so you will have a smooth transaction.

Note: As I point out throughout the pages of this site – if you already have an agent representing you – do stick with her/him. That person will guide you through the ins and outs.

However if you have not hired a real estate agent as yet, Do contact me – I will guide you on this program

This is but one of the home grants knowledge filled pages I have posted on my site! Please follow the links below to learn more about my other valuable additional home grants information:

JC Fagundes, Head Broker
EQUAL SERVICE TO ALL.
Residential. Commercial. Investments.
Ph: 404 801 4141

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