Is it still possible to buy a house with no money down in Arizona?
There are several non-profit programs out there that allow for some type of assistance for people who want to buy a house. These programs started in the mid-1990’s and are still around today — and it is one of the only ways currently to buy a home with no out of pocket money required!
Nehemiah is one of the largest non-profit organizations that allows sellers to gift money for the down payment and closing costs.
Currently, the Nehemiah program is approved by FHA — although there is some debate as to whether or not it will go away at some point in the future. FHA requirements state that you must have 3% as part of your down payment, but will allow a borrower to receive gift funds from either a close relative or a non-profit organization.
Nehemiah allows for the sellers of the property to contribute up to 6% of the purchase price which can be applied to both the 3% down payment and any related closing costs. For their services, they charge a $499 flat fee and the fee can be paid by the buyer of the home, the seller of the home or even the mortgage lender!
The simple description of how programs like the Nehemiah program work is that the seller “gives” up to 6% of the purchase price to Nehemiah who then turns around and gives that money to the buyer as a “gift”. No repayment is required — hence the “gift”!
You do not have to be a first-time homebuyer to use these down payment assistance programs — you can participate in them even if this is not your first time buying a house.
When the real estate market in Arizona is currently going through a downturn — now is a great time to get into your dream home with no out-of-pocket money required!
For more information on how to buy a house in Arizona with no money down, contact me anytime!