NSP Program

The Neighborhood Stabilization Program (NSP) was created to respond to rising residential foreclosures and property abandonment. The main purpose of the NSP is to stabilize neighborhoods that are negatively impacted by foreclosures in Polk County. NSP funds are available to buy, renovate and sell homes.
Polk NSP Guidelines

Polk Homes For Sale

Pasco County Neighborhood Stabilization Program

What is the purpose of the NSP Program?

The Neighborhood Stabilization Program has stringent guidelines covering both the prospective home buyer and the home being purchased. These guidelines are designed to ensure that program funds are used as intended by the Department of Housing and Urban Development while providing a clear way for applicants to gauge whether NSP fits their plans. All assistance for home buyers under the Neighborhood Stabilization Program requires that you meet these conditions:

  • Homebuyers will be required to complete an 8-hour homebuyer’s education class. NSP houses are for owner occupancy only. You must have a credit history that meets the requirements of a first mortgage lender.program assistance funds will satisfy their requirements.

Can I choose a home or do you have inventory of rehabbed homes?

The NSP program has an inventory of affordably priced houses.

Home Buyer Benefits

  • Houses are affordable and move-in ready
  • Professional interior design
  • Energy Star appliances
  • Insulated for energy efficiency
  • Florida Friendly landscaping

What about financing for a home?

Homebuyers will obtain fixed-rate loans that must be approved by Keystone Challenge Fund. The following types are generally acceptable – Conventional Mortgage Loans, Veterans Administration (VA), and Federal Housing Administration (FHA).

Sales Price

There is no minimum or maximum home sales price. Homes are available in various price ranges affordable to very low, low, and moderate income buyers.

Will I need a down payment?

There is no minimum down payment required for this program. Individual lenders may have minimum down payment requirements, but in most cases the NSP program assistance funds will satisfy their requirements.

Pasco County Neighborhood Stabilization Program

Who is eligible for this program?

Applicants who make less than 120% of the median income for the Tampa Bay area may apply for assistance. This is adjusted for family size. Currently, this is as follows:

Houshold Size Low Moderate
1 $33,040 $49,560
2 $37,760 $56,640
3 $42,480 $63,720
4 $47,200 $70,800
5 $51,040 $76,560
6 $54, 800 $82,200

(As of March 2015)

You do not have to be a first-time home buyer to participate in this program, nor be a current Pasco County resident. You must attend a County-sponsored Homebuyer class in order to receive assistance, and before you sign a contract to buy a house.

What kind of home can I buy?

Any type of home is eligible for this program, including single-family homes, condominiums, villas, and mobile or manufactured homes. Mobile and manufactured homes must be real property, and permanently affixed to the land. Homes must be located in targeted neighborhoods.

The following types of homes are eligible to be purchased under the program:
1) A home that has been foreclosed by its lender, and is being sold by that lender.
2) A home that the owner has not paid his mortgage for at least 60 days, and has a letter of delinquency from the lender, or 90 days late, with no letter.
3) A home that has Tax Certificate placed on it through the Tax Collector’s office.
4) The house is in foreclosure (has a Lis Pendens recorded in the public record).
Homes must also meet all County code and rehabilitation standards, and federal lead based paint rules. If the lender allows it, repairs can be completed after the closing, managed by the County, by licensed contractors (see below). The maximum sales price cannot exceed $240,000, and the home must have a value of less than 99% of the appraised value, as obtained by the County.

How do I apply for assistance?

In order to apply for assistance, you must apply through one of the partner financial institutions that have signed agreements with the County. Lenders must agree to certain requirements of the NSP, and sub-prime loans are not allowed. When you apply for a mortgage loan at one of these financial institutions, they will make an initial determination on whether you need and are eligible for Pasco NSP funds. If you do, they will reserve funds in your name with the Community Development Division. You do not apply through the County for these funds. County staff will also ensure that the home meets the standards of the Pasco County Homebuyer Assistance Program Minimum Housing Standard Checklist, which is available on the County’s website.

How much County money can I borrow?

The amount of County funds that are available first depends on how much the financial institution is able to lend you and how much you can put down. There is a limit on how much can be lent, depending on your income level and your occupation: Low Income: 50% of sales price, Moderate/Middle Income: $20,000. If you are an essential service employee, you may qualify for an additional $10,000. Essential service workers are defined as government employees, School Board employees and other educational employees, including private education and higher education, law enforcement personnel, active military and retirees; and health care workers. Families that are going through the Family Self Sufficiency Program through the Pasco County Housing Authority may have those amounts doubled, in addition to the amounts listed above. Additionally, Pasco County and the Pasco County United Way have teamed together to fund the “Prosperity Campaign.” This program helps families obtained the Earned Income Tax Credit (EITC) from the Internal Revenue Service. If you receive EITC funds through the United Way’s program, and use all of those funds towards the purchase of your home, those funds will be matched by the County above and beyond the maximum amounts listed above. Even though there are additional funds through both programs, the County homebuyer assistance cannot be more than 50% of the sales price.

Do I have to put any of my own money into the purchase?

You do have to put some of your own money into the purchase of the house. We do not differentiate between your down payment, closing costs, or other pre-paid items. The amount that you will have to put down depends on your income level and the sales price of the house: Low Income – $500 minimum investment, Moderate/Middle Income – $1,250 minimum investment.

Do I have to pay these Pasco County funds back?

The funds that come from Pasco County will be in the form of a 0% interest loan. They will have to be paid back to the County. The funds that are paid back will help other families buy homes in the future. The term of the payback is variable depending on your ability to pay. You will have a term of up to 30 years to pay off your loan. If you cannot afford to pay back the loan immediately, the loan will be deferred for five years. At the end of that time you will start making payments, at the following schedule:

Loan Amount Term of Loan Maximum Payment
$0-$5,000 10 years $41.67/month
$5,001-$10,000 15 years $55.56/month
$10,001-$15,000 20 years $62.50
$15,001-$20,000 25 years $66.67
$25,001-$30,000 30 years $69.44
$30,001-$35,000 30 years $97.22
$35,001-$40,000 30 years $111.11
$40,001-$45,000 30 years $125.00
$45,001-$50,000 30 years $138.89

This only applies to deferred loans. Homebuyers who can immediately make payments may have a higher amount. Under no case can a payment be less than $25 per month. You will know before you close what your payments will be and when you will begin to make them. If the property is rented or the homebuyer moves out, the loan will become immediately due. This is a program for homeownership. Pasco County is giving you a large subsidy, because we know that neighborhoods with high homeownership rates generally have people that take care of their property, look after each other’s kids, and have less crime. For you to sell the property quickly and receive a large payday is not the intent of the program.

Pasco County will recapture at time of re-sale or payoff the amount of equity that is not mortgaged by the lender loan and the County loan combined, at time of purchase.

Pasco Homeownership Assistance Program (download pdf)
Pasco County Approved Lender List (download pdf)
Additional Pasco POP Homes For Sale

Please contact us for more information regarding any of these properties.