State of Arizona down payment assistance program

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The social and economic benefits of home ownership are many.  A home creates an asset that provides the ability to create wealth, borrow and achieve self-reliance.  Plus, renters may actually realize monthly savings on buying vs. renting.  Yet with increasing rents, stagnant wages and high levels of student loan debt, it can be VERY difficult for first-time or boomerang homebuyers to save enough money for a down payment.

The very popular HOME Plus Home Loan Program seeks to eliminate this hurdle, offering a pathway to homeownership by giving creditworthy renters who can qualify for a mortgage, but cannot afford the down payment and or closing costs, the funds to move forward.

Administered by the Arizona Industrial Development Authority, the HOME Plus Home Loan Program provides a 30-year fixed-rate mortgage combined with down payment assistance (DPA) ranging from 0% – 5% depending upon the new underlying first mortgage. The DPA is equal to a percentage of the first mortgage and is proved in the form of a three-year, no interest, no payment, deferred soft second mortgage, forgiven monthly at a rate of 1/36 over the term of the lien.  The DPA can be used toward the down payment, closing costs or a combination of the two.  The DPA is only available in conjunction with a HOME Plus mortgage.

Program Highlights:

  • Mortgage for the purchase of an Owner occupied, Primary Residences in Arizona.
  • Borrower(s) annual income not to exceed $99,170.
  • Purchase Price limit not to exceed $396,680.
  • One borrower must complete a homebuyer education course before closing.
  • Reduced mortgage insurance premiums on conventional (Fannie/Freddie) mortgages.
  • All borrowers on the mortgage must meet the minimum credit scores reflected below as well as the new underlying first mortgage agency/GSE guidelines.

 

First Mortgage Type Down
Payment
Assistance/
Closing Cost
Assistance
Minimum
Credit
Score
Maximum
Loan-to-Value
Maximum
Debt-to-Income
Ratio
Fannie Mae HFA Preferred 5% 640 97% 50%
Fannie Mae HFA Preferred 4% 640 97% 50%
Fannie Mae HFA Preferred 3% 640 97% 50%
Fannie Mae HFA Preferred 2% 640 97% 50%
Fannie Mae HFA Preferred 1% 640 97% 50%
Fannie Mae HFA Preferred 0% 640 97% 50%
FNMA HFA Preferred-
Manufactured Home
5% 640 95% 45%
Freddie Mac HFA Advantage 5% 640 97% 50%
Freddie Mac HFA Advantage 4% 640 97% 50%
Freddie Mac HFA Advantage 3% 640 97% 50%
FHA 5% 660 96.5% 45%
FHA 4% 660 96.5% 45%
FHA 3% 660 96.5% 45%
FHA-Manufactured Home 5% 680 96.5% 45%
FHA-Manufactured Home 4% 680 96.5% 45%
FNMA HFA Preferred –
US Military
6% 640 97% 50%
FNMA HFA Preferred –
US Military Only
5% 640 97% 50%
FNMA HFA Preferred –
US Military Only
4% 640 97% 50%
FNMA HFA Preferred –
US Military Only
3% 640 97% 50%
FHA – US Military Only 6% 660 96.5% 45%
FHA – US Military Only 5% 660 96.5% 45%
FHA – US Military Only 4% 660 96.5% 45%
VA 3% 640 100% 45%
USDA-RD 2% 640 100% 45%

First Step:

We do not require a direct application from the homebuyer.  Selecting your lender is the first step in the process; your lender will be your point of contact throughout the mortgage process.  They will work with you to obtain a program qualifying mortgage and register you for HOME Plus assistance. If you want to determine if you qualify for the HOME Plus assistance and the new underlying first mortgage you’ll need to meet with an approved, participating lender.

For more information contact Dirk Swift, Program Administrator at dirk.swift@azhousing.gov.


The HOME Plus program is a true public / private sector partnership.  We raise funds in the national capital markets and form partnerships with lending institutions to deliver the HOME Plus program throughout the State.  NO taxpayer funds are used for the HOME Plus program.

 

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