Owning a house is not that easy these days because of many factors. The most common factor is not saving enough money for a down payment and closing costs. Saving for a home down payment and closing cost is challenging because there are many things that can get in the way.
If you are not financially ready, you will not be approved. However, all hope is not lost because there is such thing as DPA (Down Payment Assistance) programs. DPA programs are available for first-time homebuyers in the Arizona area. It helps people who are struggling to make the down payment and closing costs. It is high time to think about DPA. Here’s an overview of available DPA programs in Arizona:
Home Plus Mortgage Program
This home loan program is very popular because the funds are available consistently. With this, many people in Arizona have been able to achieve stability and freedom that accompanies homeownership.
• Program highlights: the program boasts of a structured three-year, soft second
mortgage, no interest, no payment, and forgiven monthly. Keep in mind that the lien is absolutely forgiven after you stay in the home for three successive years. Aside from that, the money from this program is combined with government-sponsored mortgage programs, which can be used for down payment/closing costs totaling up to 5% of the mortgage loan. For the qualified members of the US military (both active and veterans), they are eligible for an additional 1% DPA.
• Qualifications: to qualify, the maximum purchase price should be $396,680. If you are using an FHA (Federal Housing Administration) loan together with Home Plus, the loan amount will depend on the loan limits based on your county. Finally, you should have a maximum income of $99,170 with debt-to-ratio income of 45%.
Home in Five Advantage
If you are planning to buy a house in Maricopa County, you need this program to help you with your down payment and closing costs. This program is also popular for Phoenix homebuyers.
• Program highlights: if considered, you will receive assistance for down payment or
closing costs up to 3% with an additional 1% for members of US military (both active and veterans). Like the Home Plus, it is silent second, which has no interest, no payment and is forgiven monthly for the first three years of homeownership.
• Qualifications: to qualify, the maximum purchase price should be $371,930 with a FICO credit score of 640. Your income may not exceed $92,980 and the maximum debt-to-income ratio is 45%.
Pima Tucson Homebuyer’s Solution
This assistance program can help you get a house in Pima County including the City of Tucson.
• Program highlights: options available for DPA are 3%, 4% and 5%. Like others, the
program boasts of a structured three-year, soft second mortgage, no interest, no payment and forgiven monthly
• Qualifications: to qualify, you should have a maximum debt-to-income ratio of 45% and a minimum FICO credit score of 640. The household income should not exceed $83,020. Finally, you need to take a homebuyer education course before getting approved.
For full details, it is prudent to visit https://onqfinancial.com/down-payment-assistance/arizona-programs/. As soon as you think which assistance is right for you, it is time to select your lender.