Arizona Down Payment Assistance Programs

Arizona Down Payment Assistance Programs

Arizona down payment assistance programs helps potential homeowners buy their first property, without necessarily having the required down payment.

The Home in 5 Program gives you 5 per cent of the loan towards your down payment. It is however offered for residentials to be bought within Maricopa County only. You do not have to be a first-time buyer to qualify for this program, but you will need to submit paperwork to qualify.

The Home Plus Program for first time buyers. Just like the Home in 5 Program, you will have to meet credit requirements. The maximum home purchase price allowable for this program varies by county, and so you will need to check the exact amounts applicable in your county.

The Newtown Community Development Corporation has two different programs:

1. Individual Development Account – First-time home buyers only. You will receive a down payment grant of up to $15,000 dollars, and you must be within Maricopa County.

2. Community Land Trust program – With this program, you will purchase a completely renovated home at a significantly lower price. The price is lower since the land remains to be part of the Land Trust.

Maricopa County Homebuyer Assistance Program is restricted to Maricopa County. It is and administered by the Maricopa Human Services Department. It offers you up to $15,000 dollars in down payment assistance.

The Neighborhood Lift Program managed by the Neighborhood Housing Services, Phoenix.

Below is a list of Arizona Down Payment Assistance Programs:

No Down Payment Mortgages – mortgages that require no down payment

USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.

 

Low Down Payment Mortgages – mortgages that require up to 3.5% down payment

FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.

Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.

The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.

Arizona Down Payment Assistance Programs

The HOME Plus Program An Arizona mortgage loan is paired with a Arizona down payment assistance grant equal to 4 percent of the mortgage amount. As with all grants, Arizona borrowers will not need to repay the money. Income and purchase restrictions are as follows: the household income of the Arizona borrower may not to exceed $88,340, and the total amount borrowed cannot exceed $353,360. The lowest FICO credit score to qualify is 640. U.S. Military personnel can be granted an additional 1 percent towards the Arizona down payment assistance.


HUD Programs

The US Department of Housing and Urban Development (HUD) offers the following programs:

Good Neighbor Next Door Program

The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.

To learn more about the Good Neighbor Next Door Program, click here.

Section 184 Loan – The Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.

Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.

To learn more about Section 184, click here.

Arizona Housing Agencies

Arizona housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.