The City of Los Angeles Neighborhood Stabilization Program (NSP) provides up to $75,000 in down payment and closing cost assistance to qualified home buyers who purchase a foreclosed home located in one of the City's designated neighborhoods.  The City's assistance will be in the form of a deferred repayment ("silent") loan that carries 0% interest charges and requires no monthly payments for up to 30 years.  The City will also provide up to $50,000 in "silent" loan funds to be used to complete home needed home repairs.

Here are the key features of the NSP program:

1. The property purchased must have been most recently acquired by the home seller through a foreclosure process.  In other words, the home must be "bank-owned", an REO or other type of foreclosure property.  It can not be a short sale, pre-foreclosure or other privately own home.
2. The home must be located in one of the City's designated neighborhoods.  Click on the link below for maps of the designated areas.
3. The condition of the home at the time of purchase must habitable.  This means that serious problems like missing plumbing fixtures, broken windows, leaky roofs, and other hazardous conditions must be repaired by the seller or other party before the home purchase is completed.
4. The final sales price of the home must be at least one percent (1%) less than the appraised value.
5. The purchase contract should stipulate that the seller will agree to complete lender required repairs and, if necessary, agree to adjust the purchase price in compliance with the City's NSP program.  
6. Your income must fall within the maximum income limits shown below based on your household size and at the time of purchase you can not own any other residential real estate.
7. You must contribute at least one percent (1%) of the home purchase price from your own funds and be pre-approved for the balance of the financing you will need to complete the purchase.  In general this means that you must be able to verify your income with documents like pay stubs, bank statements, W2 forms and tax returns.  Additionally, you must have savings equal to two months of house payments and an acceptable credit history (620 minimum FICO credit score). 

Household Size & Income Limits

Eligible Areas for Los Angeles City NSP Program

Please follow the link below to determine if the property you are interested in is located in one of the City's eligible areas:

http://lahd.lacity.org/nsp/

If you need help finding a qualified home, please complete the form at the "Help Finding Your Home" page on this webiste.