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Neighborhood Stabilization Program (NSP) Downpayment Assistance



Prompted by the alarming increase of foreclosed and abandoned properties, the US Department of Housing and Urban Development (HUD) has authorized an allocation of $3.92 billion nationally under the title of the Neighborhood Stabilization Program (NSP) to assist states and local jurisdictions in responding to this issue. Through an NSP allocation formula derived by Oregon Housing and Community Services (OHCS), the City of Springfield is allocating approximately $227,000 to address local needs. The primary purpose of the NSP is to assist with putting abandoned and foreclosed residential properties back in service. The City of Springfield is administering the NSP funds to assist income-qualified homebuyers with the purchase of foreclosed single-family homes by helping with downpayment and closing costs.

Highlights of the Springfield NSP Downpayment Assistance Program:

  • NSP assistance will be in the form of a no-interest, deferred payment loan.

  • Households whose income doesn't exceed 120% of the area median income may qualify. See Table of Income Categories.

  • The assistance must be used to purchase a foreclosed single-family property within the Springfield city limits.

  • The property must be located in an NSP-eligible area within the Springfield city limits. See the Expandable Map of Eligible Springfield NSP Census Tracts. You may also be interested in reviewing the Statewide Map of Eligible NSP Census Tracts.

  • The property must be the primary residence of the purchaser.

  • Maximum amount of assistance is $35,000 per property. The amount of assistance is determined by household income level as a percentage of area median income. Find your household income percentage by using the Table of Income Categories. Then find out how much you may be able to quallify for in the table below:

    % of Area Median Income

    50% or less

    51% - 60%

    61% - 80%

    81% - 100%

    101% - 120%

    Maximum NSP Assistance






  • NSP may pay up to 20% of the purchase price of the qualified home (downpayment plus principle buydown). Other NSP funds may be used for closing costs, up to the maximum allowable assistance.


NSP Questions and Answers

  1. Will NSP work for a short sale? No, the property must have been foreclosed upon. NSP is not meant as a foreclosure prevention program.

  2. Are all foreclosed properties in Springfield eligible for NSP assistance? Although most areas of Springfield are eligible, there are certain census tracts that fall outside of the NSP. These areas show up as dark green on the Expandable NSP eligibility map. Areas shown in yellow are eligible. For a small, printable version of the NSP eligibility map, click here. An interactive map showing NSP eligible blocks throughout the state may be viewed by clicking here.

  3. How can I access these NSP funds? NSP funds are for downpayment assistance and must be for an identified foreclosed property. To apply for NSP funds, you will need to have a property identified and have contacted a lender about a permanent loan. The lender will make an NSP application to the City on your behalf. Funds cannot be reserved in advance of our receipt of a completed NSP application.

  4. Can I use NSP to buy a home for my son or daughter? The property that is purchased with NSP funds must be the principal residence of the borrower. A parent may be a co-signer on an NSP loan, but the son or daughter must be the principal borrower.

  5. Can I buy a rental property with NSP funds? No, the NSP is to be used only for the purchase of single-family, owner occupied homes.

  6. What happens if it becomes necessary to sell a home soon after it is purchased with NSP funds? The NSP no longer requires a sharing of equity. so, when you sell you home, you will need to repay the full amount of the NSP loan, but you will be able to keep any profit or equity that occurs from the sale.

  1. Is the NSP loan forgiven over time? No, the full amount of the NSP loan will need to be repaid. However, because there is no interest attached to the loan, the amount to be repaid will not increase over time.

  2. What events trigger repayment of the NSP loan? Repayment will be triggered by the sale of the property, refinancing, gifting or deeding the property, if the property is no longer the principal residence of the borrower, or other changes or encumberances to the title.

  3. Is there a maximum value for NSP eligible properties? No, the NSP does not limit the value of the home being purchased. However the purchase price must be at least 1% below appraised value.

  4. Does the buyer need to have a cash investment? Yes, the buyer must contribute at least 50% of the REQUIRED downpayment from their own funds. Furthermore the NSP requires that this amount be at least 1.0% of the purchase price of the home, or $1,000 whichever is GREATER. The seller may not pay this for the buyer. A family member of the buyer may help with part or all of this amount, but any assistance must be gifted with no provision whatsoever of repayment.

  5. Does the City of Springfield maintain a list of foreclosed properties? No, we don't have property list. We recommend contacting an area Realtor to help you with your search. Alternatively, there are several websites that have lists of foreclosed properties.


For more information about the Springfield NSP Downpayment Assistance Program, please contact:

Kevin Ko, Housing Programs Specialist Jodi Peterson, Management Analyst
(541) 726-2302 (541) 726-3799
kko@ci.springfield.or.us jpeterson@ci.springfield.or.us




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