The St. Cloud HRA was recently allocated an additional $91,000 in Neighborhood Stabilization Program (NSP) funding. Click here for more information.
Funds will be obligated to Buyers on a first come, first serve basis. Buyer will need to meet eligibility requirements and provide the HRA with a signed, dated PA and NSP Addendum accepted by the Seller to guarantee funds. Please contact Shannon Adamski at 202.3179 with any questions.
The St. Cloud HRA has worked closely with Stearns, Benton and Sherburne Counties to secure funding for neighborhoods in our region which have experienced high rates of foreclosure. We have secured nearly $2.5 million in funds that can be used by potential homebuyers to acquire and remodel homes in these neighborhoods.
1. There are 14 target neighborhoods. Maps of these neighborhoods can be found by clicking on the name of each neighborhood. Here is an updated list (July 2010) of eligible Target Neighborhoods:
1. St. Cloud - Core (Stearns)
2. Sauk Rapids 1 (Benton)
3. Sauk Rapids 2 (Benton)
4. Sauk Rapids 3 (Benton)
5. SE St. Cloud 1 (Sherburne)
6. St. Joseph – Liberty Pointe (Stearns)
7. Waite Park (Stearns)
8. Becker 1 (Sherburne)
9. Becker 2 (Sherburne)
10. Becker 3 (Sherburne)
11. Becker 4 (Sherburne)
12. Foley - Lange Addition (Benton)
13. Rice - Walnut Ridge (Benton)
14. Rice - Field of Dreams (Benton)
2. The funds can only be used for the purchase and/or redevelopment of vacant and foreclosed homes – not prevention of foreclosures in the approved Target Neighborhoods. Funds can only be used to purchase bank-owned properties, not from investors. If you recently purchased a home and want to use these funds to assist with your recent purchase, you are ineligible. These funds cannot be used with short sales.
3. The programs associated with this funding are for home ownership. A home buyer needs to apply for these funds. There are no scenarios for brokers or investors to use these funds to flip homes. Similarly, if you are a broker owner/landlord and want to sell your home, these funds cannot be used by buyers – the home must be foreclosed, bank owned, and vacant.
4. You can apply for these funds if your combined household income, based on family size, is less than 120% of area median income (AMI). Area Median Income differs by County. Click here to see income guidlines and to see if you are eligible. ALL sources of income will be verified.
5. Properties have to be purchased at a discounted rate of at least 1%. This is a change from previous policy (it was 15%). We will explain this in greater detail at the time you make an application. Basically, the home you intend to purchase with the use of these funds must be purchased at a discounted rate of at least 1% - from the bank that owns the home. This will be based on a fair market appraisal that is no longer than 60 days old. The HRA will pay for this independent appraisal.
6. All applicants must obtain a first mortgage, preferably from a local lender, to purchase a home. These NSP funds are subordinated (second) mortgages that assist with the purchase and/or repair of a foreclosed home, and they are not first mortgage funds. There are a number of factors that ensure affordability for people buying foreclosures. There is a certification from the applicants’ lender that ensures the first mortgage product is acceptable to HUD and Minnesota Housing Finance Agency.
7. ALL applicants will need to attend a HUD certified homebuyer education course. This is mandatory for ALL applicants, unless you can show documentation that you’ve taken one before. Even if you’ve previously owned a home, you must complete a HUD certified course. To register for a course, contact Cemtral Minnesota Housing Partnership:
Please contact Stacy Dauksavage for more information about Home Stretch and Pre-Purchase Counseling services. Stacy can be reached at 320-259-0393, Toll Free at 888-203-9301, or by email at stacy@cmhp.net
8. The programs offered with these funds are as follows:
A. Down Payment Assistance
B. Rehab Loans
C. Projects in conjunction with Central MN Habitat for Humanity
If you have further questions, contact:
Shannon Adamski: sadamski@stcloudhra.com 252-0880
Forms and Information:
Limited English Proficiency Plan
