Many home buyers, especially first-timers, don't have a lot of money saved up to purchase a home. Luckily, various government and non-profit agencies realize this, and have come up with ways to help.
Home buyer assistance programs generally consist of low-down-payment purchase loans, or down payment/closing cost loans or grants. Common restrictions include where the home may be located, whether the buyer has owned property in the past 3 years, and the household income of the borrower(s).
While many real estate agents are familiar with a few of these programs, I specialize in them, and make it my business to stay current on these opportunities. Best of all, since the seller pays my fee, my services are free to buyers!
Here are some of the most popular programs:
MCHI5 Grant - provides a 5% down payment/closing cost grant to purchase any home in Maricopa County (Phoenix, Mesa, Glendale, etc). The maximum purchase price is $300,000, and the borrower's annual income cannot exceed $88,340/year. There is an additional 1% grant for military personnel. Only certain mortgage brokers can access this program - I work with those brokers.
CRA Loan - this program requires only $1,000 from the buyer, and has no mortgage insurance requirement, lowering monthly payments anywhere from $80-$300/month. It also provides $3,000 in down payment assistance, if household income meets requirements, or the property is in a target zone.
MHH Program - provides up to $8,500 for down/cost assistance for first-time buyers. The funds are in the form of a no-interest 'loan' that is forgiven after 5 years (no payments required).
Open Doors Initiative - provides an interest-free loan of up to $10,000 that gets paid back upon sale/transfer/refinance of the property (no time limit). Any property within a participating city is eligible.
Move-in Ready - this program provides a $15,000 interest-free 'loan' that declines each year for 15 years. Payments do not need to be made on this loan. Properties are restricted to specific homes that have been remodeled per program guidelines.
$0 Down VA Loan - these are currently restricted to veterans of the US Armed Forces. Veterans will need a copy of their DD214 to qualify, and do not need to be first-time buyers. There are no income limitations for this program.
$0 Down Rural Loan - these loans are a great way to buy homes in Phoenix outlying areas, such as Queen Creek, San Tan Valley, Maricopa, and Buckeye. Income limits do apply. These loans can be used for new homes or resale homes.
$100 Down HUD Homes - HUD homes are typically offered to owner-occupants before investors, and tend to be priced lower than surrounding homes. While these homes are sometimes offered for a $100 down payment, that program is not currently available here in Arizona. However, any HUD home can still be purchased in conjunction with most of the loan/dpa programs described here.
3% Down Loans - Certain foreclosure properties can be purchased for a 3% down payment. Another attractive feature of these properties is no monthly mortgage insurance, which keeps the monthly payment lower than normal.
3.5% Down Loans - there are no geographic limitations for these loans, and the maximum mortgage for the Phoenix area is currently $346,250. As an example, for a $130,000 home, the down payment would be $4,550.
NeighborhoodLIFT Phoenix - provides up to $15,000 in down payment and closing cost assistance in the form of a 5-year forgivable loan. This program is specific to properties in the city of Phoenix. < this program is currently not available
Good Neighbor Next Door - law enforcement officers, firefighters, emergency medical technicians and teachers get the chance to purchase certain homes at a 50% discount off the appraised value. These homes are in areas targeted as in need of revitalization.
Individual Development Account - a down payment/closing cost savings program where each dollar saved is matched $1-$3 by a sponsoring agency, for a maximum of $15,000. Matching funds may take the form of a 5-year forgivable 'loan' (no payments due). Buyers must participate in finance management classes.
Program requirements and funding may vary, so please contact me for the latest information. If you would like to see if you qualify for any of these programs, fill out the form below, or call/text me at 602-410-9099.