City of Palmdale
Official Web Site
BUSINESS
- General Info
- A.V. Enterprise Zone
- Business Attraction
- Business License
- Business Retention
- Foreign-Trade Zone
- Housing Programs
- South Valley WorkSource Center
BUSINESS
HOME
CONTACT CITY STAFFHousing
Neighborhood Stabilization Program (NSP)
Homeownership Assistance Program (HAP)
This program is designed to provide low and moderate income families with a loan, for closing costs and the amount needed to meet HUD's affordable monthly housing cost guidelines, when they purchase a NSP assisted property. Applicants cannot currently own a home. The household must have sufficient income and credit worthiness to qualify for primary financing. Applicant is required to make a minimum 1% investment.
Program Description
The NSP Homeownership Assistance Program (HAP) is funded by the U.S. Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program (NSP) for the purpose of assisting in the redevelopment of abandoned and foreclosed homes. The City of Palmdale (City) has purchased and rehabilitated homes that had been abandoned or foreclosed upon. These homes have had minimum rehabilitation and are available for purchase by qualified low and moderate income families. The HAP loan is specifically designed to assist qualified households with closing costs and the amount needed to meet HUD's affordable monthly housing cost guidelines when purchasing a NSP assisted home in the City of Palmdale.Loan Limits
The HAP loan provides deferred payment principal and interest second trust deed loans, based on need, in an amount not to exceed $70,000 to make monthly housing costs affordable and for closing costs. After 15 years of occupancy by the borrower, if the borrower is in compliance with NSP regulations and program guidelines, the loan is forgiven. An annual owner-occupancy certification and monitoring shall be performed.The HAP loan may not exceed 50% of the purchase price of the property plus closing costs.
Income Restrictions
An applicant's gross annual household income must not exceed 50% OR 120% of area median income (subject to change annually) depending on the particular NSP home being purchased:| Family Size | Income Limits (50% of area median income) | Income Limits (120% of area median income) |
| 1 | $29,550 | $70,800 |
| 2 | $33,750 | $80,950 |
| 3 | $37,950 | $91,050 |
| 4 | $42,150 | $101,150 |
| 5 | $45,550 | $109,250 |
| 6 | $48,900 | $117,350 |
| 7 | $52,300 | $125,450 |
| 8 or more | $55,650 | $133,550 |
Revised December 2011
Affordable Housing Cost Requirement
Affordable housing cost is a percentage of the monthly gross household income used toward the total cost of owning a home. The first trust deed loan payment including taxes and insurance can not exceed 30% of the total gross monthly household income.Home Buyer Education Requirement
Applicants are required to complete eight (8) hours of HUD approved in-class Home Buyer Education prior to entering into a purchase agreement. This is to insure that the buyers are educated regarding the responsibilities and obligations of homeownership. The Home Buyer Education certificate must be completed within one (1) year prior to Program application submission.Repayment Terms
The NSP Homeownership Assistance Program is a 15-year deferred payment loan secured by a second deed of trust. A fifteen (15) year CC&R is recorded on the property. There are no monthly payments (principal and interest) and the loan is due and payable when the property is sold, rented, or a change in title occurs prior to the fifteen (15) year affordability period. At the end of the fifteenth (15) year, if the homeowner is in compliance with NSP regulations and program guidelines, the loan is forgiven.Frequently Asked Questions
- How do I apply to purchase a HAP qualified home?
Visit the City of Palmdale Housing page to view a list of available properties and the associated listing agent contact information or contact the City of Palmdale-Housing Division, Terry Rascoe at 661/267-5161.
- Is credit history important?
Yes, credit worthiness is considered in the approval process. A minimum 620 credit score is required. - What types of properties are eligible?
Only homes that have been purchased and rehabilitated by the City through the Neighborhood Stabilization Program are eligible. - How much down payment does the applicant need to qualify for the program?
The program requires a minimum 1% investment by the applicant. - What are the terms of the HAP loan?
The HAP loan is a no interest loan, with no monthly payments. After 15 years, if the borrower is in compliance, the loan is forgiven. - Do I only have to pay back the HAP Promissory Note amount?
If you refinance with cash out or sell the home you will be required to pay the HAP Promissory Note. But, if after 15 years you still own and occupy the home the loan will be forgiven.
Lenders
You may seek financing from any lender of your choosing and are in no way prohibited from seeking financing from a lender who is a financial institution or licensed real estate broker or brokerage company licensed to do business as a lender in the State of California.En Español/Other Languages:
