Beautiful wide open spaces and gorgeous sunsets await when you buy or build your Arizona home. Because the cost of homeownership has become difficult to obtain, Arizona has a generous home loan program to assist new buyers. Learn more about this state program and other national programs that offer help with a home purchase.

Arizona Home Loan Program

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.

What is the Arizona Home Loan Program?

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.

Home Plus Home Loan Program

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 assistance can be used toward the down payment, closing costs or a combination of the two.  It 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

How to get started in the Arizona home loan program

Selecting your lender is the first step in the process for the HOME Plus Home Loan Program; 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. [ see required credit score and maximum debt-to-income ratio requirements here.]

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

National first-time home buyer programs to consider

• If you are a first-time homebuyer, you can get a mortgage with as little as 3% down if you qualify for a conventional mortgage that conforms to the requirements set forth by Fannie Mae and Freddie Mac.  Furthermore, if you put 20% down, you do not have to pay mortgage insurance premiums.
• Because FHA loans are backed by the Federal Government, they are more relaxed on required credit scores compared to a conventional mortgage. Yet, FHA loans typically require mortgage insurance premiums.
• Veterans of the Armed Forces, (Thank you for your service!), VA loans offer you a competitive interest rate often without requiring a down payment or private mortgage insurance. As a result, this type of loan is very popular.
• Finally, USDA loans are zero-down-payment mortgages for rural and suburban homebuyers who are unable to get a traditional mortgage. Because the goal is to “improve the economy and quality of life in rural America, It offers low-interest rates and no down payments to make home purchases more affordable.

 

Where to find the Arizona home you want at a price you can afford?

Platinum Realty Network is conveniently located in the Scottsdale area and in Williams Arizona dba Northern Arizona Pros. We would be happy to assist you with finding a home that meets your needs. If you wish to browse the area’s listings, we have available MLS access for you.

Northern Arizona homes for sale – click to search

Greater Scottsdale Area homes for sale – click to search

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