NSP FAQ
Q

Is the creation of a loan loss reserve an eligible use of NSP funds?

Date Published: October 2012

Print ShareThis

A

A loan loss reserve can be created under Eligible Use A: Financing Mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties. This reserve can provide partial risk coverage to motivate financial institutions to offer loan products to potential NSP home-buyers and developers of ownership and rental housing. The NSP Policy Alert: NSP Loan Loss Reserve Guidance, published December 2010, provides more information on creating loan loss reserves using NSP.


Tags: NSP Underwriting and Project Selection - Structuring Financial Assistance Models

Links in This FAQ

FAQ ID:

1146