The Housing and Economic Recovery Act of 2008 established the Neighborhood Stabilization Program (NSP) for the purpose of quickly stabilizing neighborhoods negatively affected by foreclosures and abandoned Properties. The City of Pasco has developed the NSP Down Payment Assistance Program for the purpose of expanding opportunities for affordable home ownership opportunities by offering financial assistance to low to middle-income homebuyers who purchase a foreclosed home.
How does the Program work?
The Applicant(s) will get processed for pre-approval. Qualified applicant(s) will be placed on a waiting list in the order their application is received. Once an applicant(s) name has reached the top of the waiting list they will be contacted, screened by City staff and referred to a local lender to qualify for a mortgage (if necessary).
Qualified applicant(s) will be required to complete first-time homebuyer education class through a Washington State Housing Finance Commission approved trainer. Applicant(s) will also be required to provide $1,000 towards the required down payment .
The NSP Down Payment Assistance Program provides a loan in the form of down payment assistance and eligible closing. The City will provide financing, up to a $10,000.00, which enables a low to middle-income person(s) or family to purchase foreclosed vacant or owner occupied home for sale within Pasco City limits. Funding for this limited program is available for approximately 37 borrowers this year.
How does the Loan work?
The down payment assistance loan is carried as a thirty (30) year deferred payment, second mortgage, zero percent (0%) interest, with a local financial institution holding a first mortgage. Upon completion of the thirty (30) year deferral period or upon satisfaction of the first mortgage, whichever occurs first, the down payment assistance loan balance is amortized and paid annually over a ten (10) year period.
What Do I Need To Do?
If you are interested in this program and feel you meet the qualifications, complete the application package, attach the necessary income information and bring/send the completed package to City of Pasco, Community & Economic Development Department, 525 N Third Avenue, Pasco, WA 99301.
Do you qualify for NSP assistance?
- The house you wish to purchase must be a FORECLOSED home - no longer owned by the owner-occupant, but by the Trustee (Bank, HUD, Realtor, County, etc.)
- Use the NSP Income Guideline Chart to determine if your household meets the income requirements. Note that the household income is combined income of ALL the wage earners over 18 years of age. Household members are defined as all persons who will occupy the home. The occupants may be a single family, one person living alone, or any other group of related or unrelated persons who will be sharing the living arrangements.
