The city of San Jose has purchased houses in neighborhoods hardest hit by foreclosure and is turning them into long-term sustainable homes. The target buyers are lower- to moderate-income families.
The Housing Department's Neighborhood Stabilization Program (NSP) is providing second mortgage assistance (10 to 20%) to these homeowners to help them pay the down payments.
For example: If you are a family of four and earn $79,000 or less, you will receive the full 20%. If you are a family of four and earn $80,000-$124,000, you will receive less than 20%.
You will still have to apply for a conventional first mortgage loan to finance your home long-term. You will also be required to take a homeownership class to learn about your responsibilities.
There are 20 NSP homes left on sale. The federally funded program will expire in February 2013.
