NEXT STEPS:
If you are interested and eligible to receive these funds, here is what you should do next:
Forms and Information:
· Contact a local lender, preferably one that is familiar with NSP and get qualified for a mortgage. The lender must comply with Banks Regulators’ Guidance for Non-Traditional Mortgages’ (no sub-prime loans).
· Complete and submit an NSP Application. Applications can be found on the St. Cloud HRA’s website or by coming into our office.
· Set up an appointment to meet with Shannon Adamski, fill out additional paperwork and learn about the program in detail. Copies of income and asset verifications will be taken at this time as well as lender approval which must show rates and terms of the loan.
· Complete the required 8 hour HUD approved Homestretch course. Classes are available through Central MN Housing Partnership (CMHP). You may contact them by phone at 259.0393 or on the web at www.cmhp.net
· Locate a property you would like to purchase in a Target Neighborhood and submit a copy of the purchase agreement with the REQUIRED NSP ADDENDUM which can be found on our website or by contacting our office.
· St. Cloud HRA will then perform an inspection of the property.
· The lenders appraisal must come in at a minimum of 1% higher than the purchase price. If it does not the St. Cloud HRA can order another appraisal which NSP pays for. If the appraised value does is not higher than 1% of the purchase price the property is ineligible for NSP funds.
· After the inspection is completed the St. Cloud HRA will do the following:
§ If rehab is needed a scope of work will be development so the applicant can obtain 3 bids from licensed contractors. The lowest bid is used and a contractor must be selected prior to loan closing. No work is completed however until the loan is closed.
§ St. Cloud HRA sends a letter to the State Historic Preservation Office to assure the property is not eligible to be on a historic register.
§ St. Cloud HRA completes an environmental review process.
§ If the home was built prior to 1978 we will need to test for lead based paint. NSP pays for the lead assessment and any necessary lead work will be covered in the scope of work.
§ All rehab funds will be escrowed at the time of closing and the contractor has 90 days to complete the work.
· Once we receive a complete Purchase Offer with NSP Addendum, a SHPO review letter, the appraisal comes back showing the required 1% discount, the environmental review is complete and if applicable the rehab work is bid the St. Cloud HRA will send a letter of final eligibility to the buyer and their lender.
Limited English Proficiency Plan
