Related Items
Bringing Home the Dream Classes
Homebuyer Education Curriculum
An outline of the Homebuyer Education Program Schedule
Down Payment Assistance Programs
NHSGC provides access to the Cuyahoga County Down Payment Loan Programs that includes the Foreclosed House Buyer Downpayment Assistance Loan Program. The details and qualifications are listed below.
FORECLOSED HOUSE BUYER
DOWNPAYMENT ASSISTANCE LOAN PROGRAM
(Neighborhood Stabilization Program (NSP) Funded)
Downpayment assistance, in excess of a minimum 3% that a home buyer would be required to provide from their own funds, is available to home buyers for the purchase of a home in an eligible Cuyahoga County community which will provide a point of sale inspection, see list below. The assistance is provided in the form of a deferred mortgage loan (100% forgiven after 10 years of occupancy) that must be used for eligible costs, and it need not be repaid until re-sale or transfer of the property.
All buyers are required to complete Pre-Purchase Homebuyer Education and Home Maintenance training and counseling from NHS of Greater Cleveland and obtain pre-qualification document, with the certificate of completion dated before any purchase agreement has been signed. Any home sales in process before and/or during the required training and counseling will be deemed ineligible for participation.
Again, please note: if you are under contract and/or have a purchase agreement in place before the dated certificate of completion you are not eligible for this program.
Eligible Homes
-Single family, foreclosed homes, purchased directly from a lender
-Property must be vacant for at least 90 days before closing
-Property must be inspected for code violations and for defective paint
-Code violations and defective paint must be corrected before the buyer can occupy the house
Eligible Costs
- Title Search Fee
- Recording Fees
- Filing Fees
- Credit Reports
- Pre-purchase inspection
- Buyer’s legal fees
- Closing costs
- Appraisal
Rate, broker fee, origination fee, and points of the first mortgage must not be excessive for the type of mortgage obtained by the buyer: conventional, VA or FHA. No balloon payment or prepayment penalty allowed.
Maximum Assistance
Maximum loan amount to buy a foreclosed house is 17% of the purchase price, plus closing costs, plus point of sale repair escrow, not to exceed a total of $39,999.
Eligible Households
-Home purchase price may not exceed 99% of appraise value
-----If purchase price if less than $25,000 a broker estimate is sufficient
-----If purchase price is $25,000 or more, a third party appraisal will need to be completed and paid for by either the buyer or seller.
-Homebuyers must occupy the dwelling as their primary residence.
-Homebuyers total household income cannot exceed the limits below and they must be current on all taxes.
2009 INCOME GUIDELINES
| Household | Income | Household | Income | |
| Size | Limit | Size | Limit | |
| 1 person | $54,450 | 5 person | $84,000 | |
| 2 person | $62,200 | 6 person | $90,200 | |
| 3 person | $70,000 | 7 person | $96,400 | |
| 4 person | $77,750 | 8 person | $102,650 |
Eligible Lenders
3rd Financial Service Corp., Affordable Mortgage Corp.(LSB), Allied Home Mortgage, Capital Corp., American Eagle Mortgage, American Lending Solutions, American Midwest Mortgage, American Mortgage Service, American Mortgage Service Co., Atlas Mortgage Co.(Schmidt), Bank of America, Cardinal Community Credit Union, Charter One Mortgage, Community Corp. Mortgage Corp., Concord Mortgage Group, Consolidated Home Mortgage, Consumers Mortgage, Dollar Bank, Fairway Independent Mortgage, Fifth Third Mortgage, First Federal Lakewood, FirstMerit Mortgage, First Ohio Banc & Lending, First Place Bank, First Security Mortgage Corp., First Union Banc Corp, Flagship Mortgage, Gold Medal Mortgage, Hallmark Mortgage Services, Heritage Mortgage Services, Home Savings & Loan of Youngstown, Homestar Mortgage, Hometown Mortgage & Financial Services, Howard Hanna Mortgage Services, Huntington Mortgage Group, JMH Group Inc., Key Bank, Loan One Mortgage Co., Metro Mortgage, Miracle Mortgage, Mortgage Now Inc., MPS Financial Inc., National City Mortgage, NVR Mortgage, Preferred Mortgage Consultants, Professional Lending Solutions (LSB), Real Estate Mortgage Corp, Residential Bancorp, Ross Mortgage Corp., Schmidt Mortgage, Security First Mortgage (LSB), Third Federal Savings and Loan, Union Capital Mortgage Co., Union National Mortgage, US Bank Home Mortgage, US Financial Services, Wells Fargo Home Mortgage, Westfield Bank
Applications will be available at the NHS of Greater Cleveland upon receiving a certificate of completion and the presentation of pre-qualified lender document and submitted through your first mortgage lender.
Maximum Loan Amount - Maximum loan amount to buy a foreclosed house is 17% of the purchase price, plus closing costs, plus point of sale repair escrow, not to exceed a total of $39,999.
Eligible Communities -
Bedford, Bedford Heights, Berea, Bratenahl, Brooklyn Heights, Brook Park, Garfield Heights, Highland Hills, Maple Heights, Mayfield Heights, Newburgh Heights, North Royalton, Oakwood, Olmsted Falls, Shaker Heights, South Euclid, University Heights, Warrensville Heights
Source of Applications - First Mortgage Lenders
Household Income Limit - 120% Area Median Income
Eligible Houses - loan is only available for the purchase of foreclosed houses directly from the lender
Purchase Price Rules - Below FHA limit of $200,000
Loan Forgiveness - 100% after 10 years
Each participant is evaluated as to his or her "mortgage readiness".
Program available for a limited time and only while funds are available. Program may be withdrawn and/or changed at any time, including adding required steps that may not be listed on this website. Call for the most current requirements.
