New program helps communities with high foreclosures

Posted August 25, 2009 12:08 a.m. EDT

— A federal program aims to help North Carolina communities hit hard by foreclosures.

The federal Neighborhood Stabilization Program (NSP) targets 23 counties identified as having the “greatest need” based on foreclosure starts and other housing-related statistics.

The North Carolina Housing Finance Agency will use NSP funds to provide down payment and closing cost assistance up to $14,900 to qualified buyers to purchase a foreclosed property using its FirstHome Mortgage, which is available to first-time buyers with low-to-moderate incomes.

Buyers must invest $1,000 of their own funds when purchasing the foreclosed home, and the NSP funds can be used in conjunction with the $8,000 federal tax credit until that credit expires November 30.

To learn more about the program, go to or call 919-877-5700 or 800-393-0988.