The first homeowners under the federal government's Neighborhood Stabilization Program are starting to move in. They include Josh Morgan, who hopes to get the keys Friday to his newly remodeled three-bedroom, two-bath home in Visalia.

Morgan, 22, is the second person in Visalia to buy a house through the stimulus-funded program where cities and counties buy abandoned and foreclosed houses, renovate them and resell them to low and moderate families.

He figured he looked at an average of seven houses a week before finally landing one through the government program. "I had been looking for a good year," said Morgan, who will live in the house with his fiancé and young daughter. "But the houses we liked either had something wrong with them or we were getting beat out by other offers."

Morgan learned of the stabilization program through his real estate agent, George Mendonca, and found it helped level the playing field. That's because investors can't participate in the program.

Morgan used an FHA loan to make a 3.5% down payment on a house priced at $97,800. His monthly payment will be $710, including taxes and insurance and replaces his $600 monthly rent.

"I would definitely recommend the program," said Morgan, who works in retail. "It's great for lower-income people."

Visalia officials used their $2.3 million allotment to buy 13 houses, with six others in escrow or with purchase offers waiting for acceptance.

Visalia officials told federal officials they hoped to buy 20 houses with the money, but city housing specialist Rhonda Haynes said the final number will likely be higher because proceeds from the sales to the new owners are recycled through the program.

Other entities in the Valley are doing the same thing. Both Fresno City and Fresno County are in the mix, buying homes, rehabilitating them and looking for buyers.
Fresno County hopes to move in its first family next month.