Why must a buyer using a loan with NSP funds be required to pay less than full value for a property?
The NSP program requires that a foreclosed, vacant property be purchased at a discount of 1% of the “as is” appraised value. To meet this federal regulation, the Wisconsin Neighborhood Advantage loan requires the maximum purchase price to be 99% of the “as is” appraised value. There is one exception to this rule. If a foreclosed home was acquired and rehabbed and is now offered for sale by a non- profit or municipality that used NSP funding for the acquisition or rehab work, this house can be purchased at the full purchase price.
