That's when a friend, Lance Connolly, a Phoenix Realtor, told Locascio of the Neighborhood Stabilization Program.

CNN: New program yet to help buyers land homes

Experts want to caution those who think the Neighborhood Stabilization Program will solve Phoenix's devastated real estate market.

CNN: New program yet to help buyers land homes

For example, my agency is helping first-time home buyers with down payment assistance funds through the Neighborhood Stabilization Program (NSP).

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They wondered how the plan would intersect with the Neighborhood Stabilization Program, the large, but fleeting, Federal grant system that gives cities lateral room to address foreclosures.

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Under the Neighborhood Stabilization Program, HUD requires the lender to give buyers a 15% discount below the appraised value and the loan must be paid back in full when the homeowner sells the home or refinances.

CNN: New program yet to help buyers land homes