Arizona Home Plus Down Payment Assistance

Dated: 04/01/2018

Views: 42

 

THE ARIZONA HOME PLUS PROGRAM IS ONE OF THE BEST HOME BUYER ASSISTANCE PROGRAMS IN THE COUNTRY. IT IS OFFERED THROUGH THE ARIZONA HOUSING FINANCE AUTHORITY AND PROVIDES DOWN PAYMENT ASSISTANCE IN AZ UP TO $18,500.

 

THE HOME PLUS PROGRAM HAS GROWN IN POPULARITY OVER THE PAST FEW YEARS AS IT HAS EXPANDED ITS BENEFITS, PROGRAM OPTIONS, AND COVERAGE AREAS. CURRENTLY, YOU CAN USE THE HOME PLUS PROGRAM TO BUY A HOME ANYWHERE IN ARIZONA EXCEPT PIMA COUNTY.  HOME BUYERS IN TUCSON AND PIMA COUNTY ARE OFFERED DOWN PAYMENT ASSISTANCE THROUGH THE PIMA TUCSON HOMEBUYER’S SOLUTION PROGRAM.

 

ALL ARIZONA HOME BUYERS WHO USE THE HOME PLUS PROGRAM WILL RECEIVE A 30-YEAR FIXED HOME PLUS LOAN AND HOME PLUS DOWN PAYMENT ASSISTANCE WITH DIFFERENT OPTIONS OF 1% THROUGH 5% BASED ON WHICH SPECIFIC LOAN PROGRAM YOU CHOOSE. THE HOME PLUS DOWN PAYMENT ASSISTANCE PROGRAM CAN COVER BOTH YOUR DOWN PAYMENT AND/OR YOUR CLOSING COSTS AND IS CALCULATED BASED ON THE AMOUNT OF YOUR LOAN. SO, FOR EXAMPLE, IF YOUR LOAN AMOUNT IS $370,500 AND YOU CHOSE THE 5% ASSISTANCE OPTION, YOU WOULD RECEIVE $18,525 TO BE APPLIED TOWARDS YOUR DOWN PAYMENT AND CLOSING COSTS.

 

AS OF NOW, THERE ARE VARIOUS DIFFERENT HOME PLUS LOAN PROGRAM OPTIONS. TO GET STARTED, YOU MUST MAKE CONTACT WITH AN APPROVED LENDER WHO WILL HELP YOU KNOW IF YOU MEET THE REQUIREMENTS OF THE HOME PLUS LOAN AND THE ARIZONA DPA ASSISTANCE PROGRAM GUIDELINES. THIS FREE VISIT WILL HELP YOU BECAUSE YOU CAN FIND OUT WHICH LOAN PROGRAM IS BEST FOR YOUR PERSONAL SCENARIO. DEPENDING ON YOUR NEEDS – INCLUDING THE LOCATION OF THE HOME – YOU CAN PICK FROM A FHA, VA, USDA, FANNIE MAE OR FREDDIE MAC HOME LOAN. AGAIN, IT DEPENDS ON WHICH BEST FITS YOUR NEEDS AND HOW YOU MEET THE DIFFERING QUALIFYING CRITERIA FOR EACH PROGRAM.

 

AT THIS POINT, ONCE YOU ARE PREQUALIFIED BY THE LENDER FOR THE ARIZONA HOME PLUS PROGRAM, YOU CAN START SEARCHING FOR YOUR NEW HOME. YOUR REAL ESTATE AGENT CAN NEGOTIATE THE PRICE OF THE HOME AND OTHER OPTIONS THAT ARE TYPICAL WHEN YOU ARE BUYING A HOME IN ARIZONA. FINALLY, WHEN YOU HAVE A FULLY-EXECUTED SALES CONTRACT, YOUR LENDER WILL RESERVE YOUR HOME PLUS ASSISTANCE FUNDS.

 

HOME PLUS PROGRAM HIGHLIGHTS

  • 30-YEAR FIXED RATE MORTGAGE

  • MULTIPLE HOME PLUS DOWN PAYMENT ASSISTANCE OPTIONS

  • ADDITIONAL 1% DOWN PAYMENT ASSISTANCE FOR QUALIFIED U.S. ACTIVE MILITARY AND VETERANS

  • THERE ARE NO FIRST-TIME HOME BUYER REQUIREMENTS UNDER THE HOME PLUS PROGRAM

  • AZ HOME PLUS LOANS DO NOT HAVE PREPAYMENT PENALTIES.

  • THERE IS NO MORTGAGE SUBSIDY RECAPTURE TAX UNDER THE HOME PLUS PROGRAM.

  • THE ASSISTANCE MONEY RECEIVED IS A SILENT SECOND THAT HAS NO INTEREST, NO PAYMENT AND IS FORGIVEN MONTHLY OVER THE FIRST THREE YEARS OF HOME OWNERSHIP.  THE LIEN IS COMPLETELY FORGIVEN AFTER YOU STAY IN THE HOME FOR THREE YEARS WITHOUT REFINANCING.  THE PURPOSE OF THE SILENT SECOND IS TO PROVIDE STABILITY AND ENSURE THE ONGOING SUCCESS OF THE HOME PLUS ASSISTANCE PROGRAM IN ARIZONA.

  • THE ASSISTANCE MONEY COMES FROM A REVOLVING POOL OF FUNDS TO ASSURE CONTINUOUS FUNDING.

  • IT IS YOUR OPTION TO OBTAIN A HOME INSPECTION, BUT YOU DO NOT NEED TO BE PROVIDED IT TO THE LENDER. FURTHERMORE, THE FEE FOR THIS INSPECTION CAN BE COVERED BY THE DPA FUNDS.

 

GENERAL HOMEBUYER ELIGIBILITY REQUIREMENTS:

  • MORTGAGE FOR THE PURCHASE OF AN OWNER-OCCUPIED, PRIMARY RESIDENCE ONLY.

  • PURCHASE PRICE LIMIT NOT TO EXCEED $371,936.

  • BORROWER(S) INCOME NOT TO EXCEED $92,984.

  • MAXIMUM DEBT-TO-INCOME OF 45%

  • ALL HOMEBUYERS ARE REQUIRED TO COMPLETE A PRE-PURCHASE HOMEBUYER EDUCATION COURSE.

  • NON-OCCUPANT CO-SIGNORS ARE ALLOWED ON CERTAIN HOME PLUS LOAN PROGRAMS.

 

GENERAL PROPERTY ELIGIBILITY REQUIREMENTS:

  • MANUFACTURED HOMES ARE NOT PERMITTED ON ANY UNDERLYING MORTGAGE TYPE.

  • SINGLE-FAMILY HOMES, DUPLEXES, CONDOS AND TOWNHOMES ARE ALLOWED DEPENDING ON THE HOME PLUS LOAN PROGRAM THAT YOU CHOOSE.

  • CONSTRUCTION-TO-PERM LOANS ARE NOT PERMITTED.

 

ARIZONA HOME PLUS CONVENTIONAL LOAN PROGRAMS

CONVENTIONAL LOANS WITH DOWN PAYMENT ASSISTANCE CAN BE A GREAT OPTION BECAUSE THERE IS MORE FLEXIBILITY RELATED TO MORTGAGE INSURANCE. CONVENTIONAL LOANS REQUIRE MORTGAGE INSURANCE IF YOUR DOWN PAYMENT IS LESS THAN 20%; HOWEVER, YOU HAVE THE OPTION OF REMOVING IT IN THE FUTURE.

 

HOME PLUS - FANNIE MAE HFA PREFERRED LOAN PROGRAM

THIS PROGRAM IS DERIVED FROM THE FANNIE MAE HOMEREADY PROGRAM AND IS ONE OF THE ARIZONA CONVENTIONAL HOME PLUS LOAN PROGRAMS OFFERED. IT IS OFFERED ANYWHERE IN ARIZONA OTHER THAN PIMA COUNTY.

PROGRAM HIGHLIGHTS:

  • DOWN PAYMENT ASSISTANCE OPTIONS AT BETWEEN 1% AND 5%. YOU CAN CHOOSE WHAT IS BEST FOR YOU BASED ON YOUR LOAN SCENARIO.

  • MINIMUM FICO SCORE IS 640.  THE PREVIOUS 680 MINIMUM FICO SCORE REQUIREMENT FOR HIGHER FUND ELIGIBILITY HAS BEEN REMOVED.

 

HOME PLUS - FREDDIE MAC HFA ADVANTAGE LOAN PROGRAM

THIS PROGRAM IS DERIVED FROM THE FREDDIE MAC HOME POSSIBLE ADVANTAGE PROGRAM AND IS THE OTHER ARIZONA CONVENTIONAL HOME PLUS LOAN PROGRAMS OFFERED. IT IS OFFERED ANYWHERE IN ARIZONA OTHER THAN PIMA COUNTY.

PROGRAM HIGHLIGHTS:

  • DOWN PAYMENT ASSISTANCE FUNDS UP OFFERED BETWEEN 3% AND 5%.

  • MINIMUM FICO SCORE IS 640.   THE PREVIOUS 680 MINIMUM FICO SCORE REQUIREMENT FOR HIGHER FUND ELIGIBILITY HAS BEEN REMOVED.

 

ARIZONA HOME PLUS GOVERNMENT LOAN PROGRAMS

GOVERNMENT LOAN PROGRAMS WITH DOWN PAYMENT ASSISTANCE CAN BE A GREAT OPTION BECAUSE THEY USUALLY HAVE EASIER QUALIFYING REQUIREMENTS. THE THREE COMMON GOVERNMENT LOAN PROGRAMS ARE FHAUSDA AND VA.

 

HOME PLUS VA & USDA LOAN PROGRAMS

VA AND USDA LOANS ARE TWO POPULAR GOVERNMENT LOAN PROGRAMS THAT OFFER 100% FINANCING. THE MONEY FROM THE HOME PLUS PROGRAM IS INSTEAD USED TO COVER CLOSING COSTS. AS SUCH, THERE IS NO DOWN PAYMENT REQUIRED. THEY ARE A GREAT ARIZONA ZERO DOWN LOAN PROGRAMS. HOME PLUS VA AND USDA LOAN PROGRAMS ARE OFFERED ANYWHERE IN ARIZONA OTHER THAN MARICOPA AND PIMA COUNTIES.

PROGRAM HIGHLIGHTS:

  • DOWN PAYMENT ASSISTANCE OFFERED UP TO 2% FOR USDA LOANS.

  • DOWN PAYMENT ASSISTANCE OFFERED UP TO 3% FOR VA LOANS.

  • MINIMUM FICO SCORE FOR BOTH PROGRAMS IS 660.

 

HOME PLUS FHA LOAN PROGRAM

FHA LOANS WITH DOWN PAYMENT ASSISTANCE IN ARIZONA HAVE BEEN POPULAR FOR THE PAST FEW YEARS BECAUSE THEY HAD LOWER MINIMUM CREDIT SCORE REQUIREMENTS AND WERE EASIER TO QUALIFY FOR THAN CONVENTIONAL MORTGAGES. THEY STILL HAVE MANY ADVANTAGES THAT MAKE THEM ATTRACTIVE TO ARIZONA FIRST TIME HOMEBUYERS. THE HOME PLUS FHA LOAN PROGRAM IS OFFERED ANYWHERE IN ARIZONA OTHER THAN MARICOPA AND PIMA COUNTIES.

PROGRAM HIGHLIGHTS:

  • DOWN PAYMENT ASSISTANCE OPTIONS OF 3%, 4% AND 5%. YOU CAN CHOOSE WHAT IS BEST FOR YOU BASED ON YOUR LOAN SCENARIO.

  • MAXIMUM PURCHASE PRICE OF $371,936. IF USING AN FHA LOAN WITH HOME PLUS, THE MAXIMUM LOAN AMOUNT DEPENDS ON THE FHA LOAN LIMITS IN YOUR COUNTY.

  • MINIMUM FICO SCORE FOR THE HOME PLUS FHA LOAN PROGRAM IS 660.


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