Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Arizona
City of Tempe Community Assisted Mortgage Program
The City of Tempe established the Tempe’s Community Assisted Mortgage Program to encourage potential buyers to choose Tempe as their home. The program is also designed to increase the rate of homeownership in the city.
Available Assistance
The assistance funds are provided to eligible applicants as a non-amortizing, zero-percent loan. However, the entire amount is due upon the sale, transfer or title of the property, refinance (for reasons other than a change to rate and/or term), or if it is no longer used as the borrower’s primary residence. Furthermore, the assistance funds do not go over the difference between the maximum mortgage a household can afford and the purchase price of the property.
Eligibility Requirements
All applicants must be first-time buyers with a household income at or below 80% of the area median income. This is one of the requirements to be eligible for the City of Tempe Community Assisted Mortgage Program. All buyers must also apply and obtain a first mortgage. In addition, they need to contribute $1,000 or 1% of the purchase price (whichever is higher).
Property Guidelines
Eligible property types for the Community Assisted Mortgage Program include: single-family homes, patio homes, townhomes, or condominiums. The purchased property must be within the City of Tempe. It must also be empty or owner-occupied at the time of the purchase offer. Furthermore, all homes must pass a City of Tempe Housing Inspection before closing, and the HUD limit for Maricopa County must not be exceeded.
Arizona Homebuyer Down Payment Assistance: HOME+PLUS
HOME+PLUS Home Buyer Down payment Assistance Program provides creditworthy renters who can’t afford the down payment or closing costs with the money to move forward.
Available Assistance
HOME+PLUS Home Buyers Down Payment Assistance Program offers a fixed-rate 30-year mortgage with down payment assistance (DPA). The amount of DPA varies depending on the new underlying mortgage. You can use the DPA to pay the down payment or closing costs. Only a HOME+PLUS mortgage can be used with the DPA.
Eligibility Requirements
All Counties and all Cities in Arizona can apply for the program. However, the borrowers’ annual income should not exceed $112,785.00. Additionally, before closing, one borrower must take a course in homebuyer education. Those under Fannie/Freddie mortgages can have lower mortgage insurance premiums. And lastly, all mortgage borrowers should have a minimum credit score of 640 or higher.
Family Housing Resources Down Payment Assistance
Family Housing Resources of Arizona provides the HOME down payment assistance program for low- to moderate-income borrowers. This program provides assistance to homebuyers up to $3,700. It covers 3.5% of the property’s purchase price in Pima County, Tucson.
Available Assistance
The program provides homebuyers with 3.5 per cent of the purchase price of a property in Pima county of Tucson. However, the maximum amount is $3,700. This money can be used to cover closing costs, down payments, and prepaid items.
Eligibility Requirements
To be eligible for the FHR program, borrowers must meet a few requirements. All applicants must have a debt to income ratio of no more than 45 percent and liquid assets not exceeding $10,000 after contributing to the home purchase. The down payment must be paid by the applicant. They will need to disclose their household income and take FHR’s Homebuyer Education Course. The City of Tucson must not have any homebuyers owing them money for Section 8 or Public Housing. They are also required to prove that they have enough to cover their mortgage payments at closing.
Property Guidelines
The property must be occupied, or vacant, and it must serve as the applicant’s primary residence. The appraised value must not exceed the purchase price. Then, homebuyers should shoulder the expenses for an inspection of their home by an inspection company with a license. Additionally, the property must comply with the HUD and Local Code standards.
There may be additional terms and conditions that may apply to the program. You can find them at the Family Housing Resources website.
This programme similar to the down payment First-Time Homebuyer Assistance Programs in Alaska
HOME Plus Program
Arizona Housing Finance Authority’s HOME PLUS program provides creditworthy homebuyers with a 30-year fixed-rate mortgage. It also offers assistance funds used towards closing costs or the down payment.
Available Assistance
AzHFA’s HOME PLUS Program provides creditworthy applicants with a fixed-rate 30-year mortgage. It also offers assistance funds used towards closing costs or down payments. This assistance is in the form of a monthly, zero-interest, deferred third mortgage that can be forgiven at 1/36 per month for the duration of the lien. Based on the type of primary mortgage (Fannie Mae or Freddie Mac, FHA/USDA-RD and VA), the loan amount can vary up to 5 percent.
An additional 1 percent down payment assistance is available to qualified U.S. military personnel, veterans, active duty military and active members of the National Guard. However, this allocation is subject to change and is available on a first-come, first-serve basis.
Eligibility Requirements
All applicants must meet certain criteria to be eligible for Home Plus. The program’s maximum annual income limit is $92,984. They must also complete a homebuyer education class before closing. You can fulfill this requirement by enrolling in an online pre-purchase course offered by mortgage insurance companies or another HUD-approved provider of homebuyer education.
Property Requirements
The property should be the applicant’s primary residence and located in Arizona. Maximum purchase price for the program is $371,936.
Maricopa County Home in Five Advantage Program
Maricopa County offers the Home in Five Advantage program to eligible applicants. This program assists low- and medium-income families and individuals to purchase a home. It also provides assistance with closing costs and down payments.
Available Assistance
Qualified home buyers may receive up to 5% in assistance towards closing costs and down payment. In addition, you can obtain a loan with a low interest rate the Home in Five program. Some qualified applicants may also be eligible for an additional 1% in assistance funds. Additional assistance is available to K-12 teachers, U.S. military personnel, veterans and income-qualified individuals earning up to $36,450 per year.
Eligibility Requirements
The Home in Five program requires applicants to have a minimum FICO score of 640 and an annual income of up to $108,920. Their debt-to-income ratio should not exceed 50%. Before closing, they must have successfully completed a homebuyer education program.
Property Guidelines
The program guidelines require that applicants occupy the home they have purchased as their primary residence within sixty days of closing. They do not allow refinances with the program funds. But you can use the program funds to buy a home, condo, or townhome in Maricopa County.
Pathway to Purchase Down Payment Assistance
Pathway to Purchase Down Payment Assistance offers a fixed-rate 30-year mortgage with a second-mortgage for down payment assistance. Additionally, this is a five year lien on the property at 0% interest. However, this program is only available in 17 Arizona cities.
Available Assistance
The “P2P” Down Payment Assistance program provides a 30-year fixed rate mortgage with a second-mortgage (DPA) as down payment assistance. This is a five year lien on the property at zero interest. Maximum assistance is $20,000.
Eligibility Requirements
To be eligible for P2P, potential homebuyers must satisfy certain requirements set by ADOH. The home should be their main residence and its price cannot exceed $371,936. The applicant’s family’s annual income should not exceed $92,984. However, this program is only available for Fannie Mae HFA preferred mortgages. Additionally, the applicants should take a homebuyer education course that the HUD recognizes.
The P2P Program is strictly limited to the following cities: BullHead City, Casa Grande, Glendale, Green Valley, Kingman, Phoenix, Rio Rico, Sahuarita, Sierra Vista, Tucson, Vail, and Yuma.
Pima Tucson Homebuyer’s Solution Program
Pima Tucson Homebuyer’s Solution Program provides down payment assistance for homebuyers. This can help to pay for out-of-pocket costs associated with a mortgage transaction that many first time homebuyers cannot afford.
Available Assistance
Pima Tucson Homebuyer’s Solution Program provides eligible applicants with a 30-year fixed-rate first mortgage. It also includes assistance funds up to 3, 4 or 5% of the loan amount. This option is available for both first-time homebuyers and repeat buyers. You can then use this money to pay the down payment, closing costs, or prepaid items. Additionally, this assistance does not require repayment or recapture tax.
Eligibility Requirements
All applicants must meet the requirements to be eligible for the Pima Tucson Home Seller’s Solution Program. All applicants must have credit that is acceptable and follow all FHA, VA USDA & Freddie Mac guidelines. However, the program limits applicants’ household income. They must also successfully complete a homebuyer education program.
Property Guidelines
The property should be the applicant’s primary residence. It must also be within Pima County or the City of Tucson. The following are the eligible property types: new or existing residential, one-four units–detached or attached–condominiums or townhomes.
Income Limits
The income of a household is any income earned by members (18-years or older) who live in the house, regardless of whether they have a mortgage.
- FHA, VA, USDA Loan: $83,020
- Conventional Loan: $88,950
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