I was just reading some articles in the reviewjournal.com when I saw an interesting article entitles, “HOPE FOR HOMEBUYERS: HUGS opens to first-time buyers“. According to this article, Help Us Give to Our Schools (HUGS) is going to offer assistance for those who can no longer qualify for the Nehemiah down-payment assistance program. HUGS is a down-payment assistance program which helps Clark County School District employees. This program began offering assistance January 1 and became available to all first-time homebuyers in Nevada in September. This program helps those who cannot afford it, pay the down payments or closing costs.
In order to qualify for assistance, prospective homeowners are required to:
- Attend one of HUGS’ homeowner seminars.
- Provide at least 1 percent of the down payment for their home.
- Use a HUGS Foundation mortgage agent or realtor.
- Occupy the home for at least three years.
Families and individuals who hope to qualify for assistance cannot earn more than $82,500 (families) or $41,000 (individuals) and cannot have liquid assets worth more than $15,000.
The Nehemiah program was eliminated as part of the Housing and Economic Recovery act of 2008. The hugs program is different from Nehemiah in that it requires prospective homebuyers to provide at least 1% of the value of the home out of pocket. The program’s restrictions help to ensure that only those who cannot provide the down payment or closing costs of a home may qualify.
Hugs is funded by donations as well as sponsor, partnership and membership fees, for example, membership costs $495 per year. Current business partners include American West Homes, Amstar and Countrywide Bank.
What started out as a program to help attract new teachers to the area has become quite a popular program which has already helped over 100 teachers secure financing and is currently processing some 80 to 90 requests per month.
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If you would like more information about HUGS, please visit hugsfoundation.com.
