Neighborhood Stabilization Loan of up to $50,000 at 0% Interest!

The City of Medford has rolled out a program for the rehabilitation of neighborhoods throughout the city. The program is called Neighborhood Stabilization Program . It is part of the Housing and Economic Recovery Act of 2008. The purpose of the funds is to return foreclosed, abandoned or blighted properties to the market in target areas with the greatest need. This loan is a second mortgage on the property. It is a shared appreciation loan so in the first 5 years if you sell then a portion of the equity is shared with the City of Medford in repayment of the 0% loan that was given to the home buyer. Up to $50,000 in assistance for down payment, closing costs, pre-paids and first mortgage reduction is available. The loan may also be used to rehabilitate the property.

The properties that qualify are foreclosed upon single family residences, condominiums, and townhomes and FHA approved manufactured homes. The manufactured home must be detitled and on a permanent foundation. The important item here is that these properties must be foreclosures. The property must have already been taken back by the bank and the title transferred into the banks name to qualify.

There are income guidelines for qualification. The first mortgage must be a fixed rate mortgage and the buyers must attend 8 hours worth of approved education on the ABC’s of Homebuying or Realizing the American Dream in order to qualify.

If you are looking for a lender to help you learn more call Linae Simpson at Rogue Federal Credit Union. Her number is 541.941.3926.  She will walk you through all the steps of the process.