Does the Neighborhood Stabilization Program (Georgia) allow you to borrow beyond the grant money?

Asked by Adriane Lilly, Atlanta, GA Sun Apr 5, 2009

for renovations? I know that you are eligible for $14,000 for down payment assistance and renovation costs, but what if the home you are looking at needs much more work? Does the underlying FHA loan allow you to borrow more (assuming you are pre-approved for more than the asking price of the home itself)? Specifically, we are looking at a home for $150,000 and know that we are pre-approved for closer to $200K but we don't have a down payment. So if we use the NSP, can we still get up to $50,000 for additional renovation costs? It seems that all of the foreclosures in the areas we like (Decatur, Oakhurst, etc.) are in pretty rough shape. Thanks!

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Deborah Simm…, , Tyrone, GA
Wed Apr 8, 2009
Hi Adriane -- You can use the NSP in conjunction with an FHA 203k program in order to make repairs to the property in excess of the $14K you have available from the program. We offer two different 203k programs -- a streamlined program up to $35K and a non-streamlined program for repairs in excess of $35K. Of course, you not only have to qualify for the additional funds but you still need to meet all of the NSP Program eligibility guidelines as well. For a deal like this just allow yourself plenty of time and a little bit of patience! It's a new program and the 203k is more involved as well. But, you can accomplish what you are trying to accomplish! If you would like to speak more about this you may reach me at 770-486-2622. Thanks - Deborah Simmons, Wells Fargo Home Mortgage
2 votes
Jackie Campb…, Agent, Newnan, GA
Wed Apr 8, 2009
Hi, Adriane,

I wanted to revisit this with you, since I went to a training class on this program yesterday, and your question was specifically addressed:

The $14,000 down can be used in conjunction with a 203K loan ONLY if the Lender is one of the Georgia Dream Participating Lenders who are approved for 203k origination. The list, as of March 15, 2009, of these approved lenders is as follows:

*Allied Home Mortgage Capital Corp
*Brand Mortgage Group LLC
*Colonial Bank
*Cornerstone Mortgage Company
*Countrywide Bank FSB
*First Service Mortgage Inc
*Flagstar Bank FSB
*Freedom Mortgage Corporation
*Mortgage Counseling Services, Inc
*New South Federal Savings Bank
*Pine State Mortgage Corporation
*Shelter Mortgage Company, LLC
*Taylor, Bean & Whitaker Mortgage Corp
*United Bank
*Wells Fargo Bank

Deborah Simmons, at Wells Fargo, is a good contact. Her number is 770-486-2622.
1 vote
Jackie Campb…, Agent, Newnan, GA
Mon Apr 6, 2009

While there is no specific mention of any restrictions on coupling an FHA 203K loan (a rehabilitation loan) with the Georgia NSP, I would encourage you to discuss this with your lender in detail, since the program--without a rehab loan-- is already fairly complex.

I also recommend the DCA (Department of Community Affairs) website for additional details. Here is the link:…

Good luck,

Jackie Campbell
1 vote
Felicia Will…, Agent, Fayetteville, GA
Mon Apr 6, 2009
Hi Adriane,

There is a FHA Repair loan that would allow you to take out the loan for the repairs need for the property. Ask your loan officer if he/she knows how to do a FHA 203K loan. If not I know a loan office that does this loan. So you will still be able to have you NSP plus the repair money from the FHA loan. Thanks

Felicia Williams
Solid Source Realty
1 vote
Adriane Lilly, Home Buyer, Atlanta, GA
Wed Apr 8, 2009
Thank you for the responses! They are very helpful. I've been working with a mortgage broker who I really like, but I know this program is so new and complicated that we both have some questions about it. Thanks again for your help!
0 votes
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