The Arizona real estate market is active! With rates low and demand for housing up, many people are thinking about purchasing a new home. If you would like to buy a new home but have hesitated because you lack a down payment, these are some great down payment assistant programs* available in Arizona.
Home Plus Mortgage Program
The popular Arizona Home Plus loan program has been available for a few years but was recently enhanced. The program is a three-year soft second mortgage with zero interest and no payments at a rate of 1/36 throughout the lien. The lien is completely forgiven once you stay in the home for three years without any refinancing. Funds from the Home Plus assistance program are combined with other government-sponsored mortgage programs, and you can use the money for closing costs and a down payment amount equal to 5% of the home loan. You do not need to be a first time home buyer and qualified members of the U.S. military may be eligible for 1% more in down payment assistance.
Home in Five Advantage
The Home In Five Advantage program is for people looking to purchase a home in Maricopa County. It provides down payment and closing cost assistance of up to 3% of the loan value. An additional 1% may be available for qualified veterans, active reservists and those that are active in the National Guard. Much like the Home Plus Mortgage Program, The Home in Five program acts as a silent second mortgage with no interest and no payment and is wholly forgiven monthly after the first three years in the home. Again, you don’t have to be a first time home buyer to qualify, but you will need to take a home buyer education course as part of the program.
PIMA Tucson Homebuyer’s Solution
The Pima Tucson Homebuyer’s Solution is for home buyers located in Pima County, including the City of Tucson. The program helps overcome some financial barriers, such as coming up with a down payment. The benefits are similar to the above programs. There is not a purchase price limit in this program, except for the usual maximum amounts of the specific loan program you choose. For example, the 2019 maximum FHA loan amount in Pima County is $314,827, and your household income currently can’t exceed $99,169 per year. Program highlights include down payment assistance of up to 5% and no first-time homebuyer requirement. The assistant fund is a silent second, much like the programs listed above, and you will also need to take a homebuyer education course.
These are the three main programs available for down payment assistance for Arizona residents. Check with your local mortgage broker to find out if you qualify, and to learn about any other additional programs, such as the Pathway to Purchase (P2P), Neighborhood Stabilization Program or ADDI (The American Dream Down Payment Assistance program). Soon you might be handed the keys to your new home!
Note: Opinions expressed are solely my own and do not express the views of my employer
*First lien interest rates maybe higher when using a DPA second.