New Programs Target Low-Income Buyers

New Programs Target Low-Income Buyers
Under the federal Neighborhood Stabilization Program, many new state and local initiatives are expected to roll out in the next few weeks that will help middle- and low-income families buy foreclosed homes in hard-hit neighborhoods.

In all, about $5 billion is available, including $50 million in technical assistance to get the programs up and running. Regulations limit participation to households earning no more than 120 percent of the median income with 25 percent of the money going to families earning less than half the median.

The funds must be used for primary residences in communities with the highest incidences of foreclosures and subprime loans. There also will be a lease-to-own program.

The Neighborhood Stabilization Program was authorized last summer, but it has been rolling out slowly because the volume of paperwork involved has stymied communities.

Source: CNNMoney.com, Les Christie (06/24/2009)