Arizona Mortgage Team

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Down Payment Assistance Programs In Arizona

Many people who are thinking of buying a home here in Arizona are interested in more information about down payment assistance programs. Here is a brief summary of just a few of the programs available in Arizona for down payment assistance. Each program is slightly different and designed to help different people in different situations, but each program shares the common goal of helping people get into homes.

One of the most popular programs in Arizona is the Home In 5 Advantage program. Right here in Maricopa County, there is free money available to help you buy a home. But the money won’t last forever – when the program launched, there was about 32 million available – and as of April, 2013 there is now about 2.5 million left. It is possible that another allocation of money will happen – but don’t count on it! Get pre-qualified now with a leading lender who is participating in the program.

Home in 5 Advantage Program: How it Works

Five percent of the loan amount is given to a borrower to cover their down payment and a portion of their closing costs. Veterans receive 6 percent and, since they are already eligible for 100 percent financing, the 6 percent covers all of their closing costs and essentially they get into the home for nothing. There is a minimum credit score requirement of  640, and your household income cannot be higher than $88,000. The maximum sales price of the home in Maricopa County of $300,000. NOTE: The Home in 5 program also is now open in Yavapai and Coconino Counties – and if it goes like it has in Maricopa County, expect there to be a mad rush to get approved for the program. You do not have to pay the money back – it is considered a grant and not a loan.

Home in 5 Program Highlights

Here are just some of the highlights:

  • 5% down payment assistance. Assistance is calculated as 5% of the initial principal balance of mortgage loan.
  • 30 year Fixed Rate Home Loan with Competitive Interest Rate (set by IDA). **The interest rate may change periodically to stay competitive with the market**
  • This is a grant, so no repayment is required.
  • Eligible loan types: FHA, VA, or USDA-Rural
  • Minimum 640 credit score
  • Maximum of 45% debt to income ratio
  • There is no First Time Homebuyer Requirement
  • Maximum qualifying income of $88,000
  • Important for Military (Qualified Veterans, Active Duty Military, Active Reservists, Active National Guard)
  • Down Payment Assistance is increased to 6%

Home in 5 Advantage: How To Qualify

Not all mortgage lenders are participating in the program – so the first step is to find a lender who can help you get qualified and is participating in the program. There are plenty of great lenders who are participating in the program, we can easily help you find one.

Home in 5 More Information

Home In 5 Advantage Program Product Sheet

Click here to get matched with a lender who can help you get qualified.

Home Plus Program

If you are buying a house outside of Maricopa or Pima county, you may be able to utilize the Home Plus Mortgage Loan Origination program. This program is very similar to the Home in Five program and is very popular because each person that participates in the program receives a grant that is non-repayable. The grant can be used for down payment and/or closing costs that is equal to 4% of the loan.

Home Plus Program Highlights:

  • No first time home buyer requirement.
  • No requirement to pay back the 4% grant. Also, it is not a 2nd mortgage.

Home Plus Program: How to Qualify

  • Buy a house anywhere in Arizona outside of Maricopa and Pima County up to the local limits listed below.
  • Qualify for a FHA, VA or USDA loan with a maximum debt-to-income ratio of 45%.
  • Minimum FICO score is 640.
  • Income from all borrowers may not exceed the local limits listed below.
  • Must complete an easy online homebuyer education course.

FNMA HFA Preferred Loan Program

The FNMA HFA preferred loan program is a No Money Down Conventional loan product for Arizona buyers. There aren’t too many down payment assistance programs in Arizona that can be used with a Conventional loan. This is one. Why is this a good option? Because, unlike some other loan programs, conventional loans allow you to remove the private mortgage insurance (typically on loans with less than 20% down) down the road.

This program provides down payment assistance up to 4% of the loan amount and is combined with a conventional loan of up to 97% loan-to-value.

FNMA HFA Program Highlights:

  • Max LTV of 97%
  • 30 year mortgage
  • Minimum credit score of 680
  • Maximum debt-to-income of 45%
  • Maximum income of $88,340
  • Maximum purchase price of $353,360
  • Primary residence purchases only (no condos, manufactured homes or multi-unit properties
  • Borrower can not own any other homes at the time of closing
  • Eligible areas include all of Arizona except Pima County

Click here to get matched with a lender who can help you get qualified.

Pima Tucson Homebuyers Solution

If you live in the Tucson area, the Pima Tucson Homebuyer’s solution is a popular program. The benefits are similar to those offered by the programs listed above and are offered in all of Pima County including the City of Tucson.

There is no purchase price limit to this program; however, household income cannot exceed $68,885.

Pima Tucson Homebuyers Solution Program Highlights:

  • No first time home buyer requirement.
  • No requirement to pay back the 4% grant. Also, it is not a 2nd mortgage.
  • The money is available … there is waiting for future funding.

Pima Tucson Homebuyers Solution Program: How to Qualify

  • Qualify for a FHA, VA or USDA loan with a maximum debt-to-income ratio of 45%.
  • Minimum FICO score is 640.
  • Must complete an easy online homebuyer education course.

 

Neighborhood Stabilization Program (NSP)

When the housing crisis started back in the mid-2000’s, the federal government took action to help bolster the weakened economy and help fix the housing market. This included the creation of the Neighborhood Stabilization Program. As the name suggests, this program was formed to stabilizing areas that had suffered from foreclosures.

The NSP program includes grant money that has been given to states, local governments and select non-profit entities. It was originally created in 2008 as part of the Housing and Economic Recovery Act. It was then continued through a second round of funding provided in 2009 under the American Recovery and Reinvestment Act. Next, additional funds were authorized under the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010.

State and Local Neighborhood Stabilization Program Allocations

Arizona Neighborhood Stabilization Program Information

 

Other Arizona Downpayment Assistance Resources

Here is a list of other resources that may be helpful when learning more about down payment assistance options here in Arizona.

Click here to get matched with a lender who can help you get qualified.

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