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How to know that Arizona Home Buying program is good for you?

Having a home is one of the basic needs of a person because of many reasons. It is a place for your loved ones to feel safe, happy, to create memories, to grow and see your loved ones grow. It also is financial security and a symbol of dignity because of which people take much pride in their homes. This is why perhaps James Otis once said that a man’s house is his castle. But buying a home is not as easy as it may seem. In reality, it is a daunting experience especially so if you are a first-time buyer.

State Assistance

If you are looking to buy houses in Arizona, you have the opportunity to take advantage of the home buying programs offered by the Arizona Department of Housing (ADOH). You can get national loans that are federally approved without having to worry about your credit history or the funds that you currently have. It is a great investment opportunity not only for the present but for your future financial security as well. After your retirement, once you have turned 62, you and your spouse can reverse mortgage Arizona homes in exchange for annuity plans which would not have to be paid off within your lifetimes. Your legal heirs can then sell the house to repay the loan and interest.

Here is why Arizona Home Buying Programs are good for you:

Arizona Home Plus Program

The Arizona Home Plus loan program is the most popular as it is available for people all across Arizona. Funds have been available for everyone that has qualified for such assistance. Arizona Home Plus program has helped numerous people to buy their own home. 

It is a three-year program that is forgiven monthly over the course of 36 months. This literally means that you have to pay no interest or payment for the assistance that you receive. The only condition is that you have to stay in that home for the duration of those three years and you cannot refinance the property within that time. This generally does not put a hardship on the buyers. After the three years are over, they can refinance the house as per the reverse mortgage AZ terms.

The money that you receive from the program is used along with the other programs sponsored by the Government to pay the down payment on the house. Additionally, depending on the program that you choose, you can get higher assistance then the down payment. In that case, you can use the excess amount in paying the closing costs of purchase. This Downpayment Assistance amount is capped at 5% of the mortgaged loan.

The requirements of the program are:

  • The home must be located within the state of Arizona;
  • The maximum price at which you can buy the home is $396,680.
  • The total income of your household should not exceed $99,170.
  • Your Debt-to-Income (DTI) ratio should be lesser than or equal to 45%.
  • You must complete the Home Buyer Education class.
  • The credit score should be at least 640.
  • You must stay at the home purchased for a period of three years following the purchase.
  • This program can be used with multiple types of loans, such as conventional loans, FHA, VA, or USDA loan.

Outside of the Home Plus Program, there are additional programs for specific cities as well.

Home in Five Program 

This is for homebuyers in the low and moderate-income bracket in Maricopa County. Buyers may be eligible to receive up to 3% in Down payment Assistance with the Home in Five Program.  This program is available for both first time home buyers and those that already own property. The requirements are the same as those under the Arizona Home Plus Program except that:

  • The home must be located in Maricopa County.
  • The maximum price at which you can buy the home is  $371,930.
  • The household income can not exceed $92,980.

Pathway to Purchase Program 

The ADOH offers a special Down Payment Assistance program for home buyers in 17 specified cities in Arizona.  The reason to create this program was to encourage home purchases in those housing markets that had high rates of foreclosures.  If one qualifies for this program, one may receive up to 10% of the purchase price or $20,000 whichever is lower.

  • It requires the buyer to meet certain conditions which are:
  • The maximum price at which you can buy the home is  $371,936.
  • The household income of the buyer must not exceed $92,984.

Only the purchase of an existing home is permitted in the cities notified by the council which are:

  • Arizona City, 
  • Avondale, 
  • Buckeye, 
  • Casa Grande, 
  • Coolidge, 
  • Douglas, 
  • El Mirage, 
  • Fort Mohave, 
  • Goodyear, 
  • Huachuca City, 
  • Laveen, 
  • Maricopa, 
  • Red Rock, 
  • Sierra Vista, 
  • Snowflake, 
  • Tucson, 
  • Yuma

The buyer must use a Freddie Mac HFA Advantage mortgage.

The programs have been meticulously crafted to help people afford housing at reasonable rates. The better credit standing that a person has would help their chances to get better terms undoubtedly. However, everyone with a credit score of 500 or more can apply for the loans and down payment assistance programs.

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