Neighborhood Stabilization Program Assistance
This assistance is available to home buyers purchasing a foreclosed and vacant home using the Wisconsin Neighborhood Advantage loan.
Neighborhood Stabilization Program (NSP) assistance was made available through the federal Economic Recovery Act of 2008. Home buyers can access this assistance through specific nonprofit organizations and local units of government that have been awarded NSP funds for housing assistance. This funding is limited and available on a first come, first served basis.
NSP housing assistance can be used to help pay for:
- Down payment
- Closing costs
- Property rehabilitation
- Home buyer education and post-purchase education expenses
Assistance may be in the form of a grant or a forgivable, deferred to amortizing loan. Check with the individual NSP provider for the terms and conditions of their assistance. This NSP Resource Listing has contact information for the organizations that have NSP assistance for home buyers purchasing a foreclosed home.
WHEDA is a resource for NSP assistance. WHEDA NSP assistance for down payment and closing costs is in the form of a forgivable loan.
- WHEDA NSP assistance for down payment and closing costs is a 0% interest, no monthly payment, forgivable loan.
- Some of these NSP funds may have to be repaid depending on if and when a homeowner sells the property.
- The amount of forgivable loan repayment is calculated based on the amount of NSP funds received and the number of years the homeowner remains in the home.
- If NSP funding is less than $40,000, the forgivable period is 10 years.
- If NSP funding is $40,000 or greater, the forgivable period is 15 years.