What is the Arizona Home in Five Advantage Program?
The Home in Five Advantage Program assists low- and moderate-income individuals and families in purchasing homes within Maricopa County by providing up to 6% assistance for down payment and closing costs, coupled with a competitive interest rate on a 30-year fixed-rate mortgage.
Who is eligible for the Home in Five Advantage Program?
Eligibility requires a minimum FICO credit score of 640, an annual income not exceeding $141,820, and a debt-to-income ratio up to 50%. Applicants must also occupy the purchased home as their principal residence within 60 days of closing and complete an 8-hour homebuyer education course through an Arizona-based HUD Approved Housing Counseling Agency.
How does the down payment assistance work?
The assistance is provided as a forgivable second mortgage, with options for 3-year, 7-year, or 30-year terms. No payments are required unless the home is sold, transferred, or refinanced before the end of the forgivable period. For example, a 3-year forgivable second mortgage is forgiven in full after 36 months, provided the borrower meets all program requirements.
Are there additional incentives for certain professions?
Yes, an additional 1% down payment assistance is available for qualified K-12 teachers, United States military personnel, veterans, first responders, and income-qualified borrowers earning an annual income at or below $44,400.
What types of properties are eligible?
Eligible properties include new or existing single-family homes, condominiums, planned unit developments (PUDs), and townhouses located within Maricopa County. The program is intended for new purchases only and does not support refinancing.
Is there a purchase price limit for homes?
No, there is no specific purchase price limit for homes under the Home in Five Advantage Program. However, borrowers must meet all other program requirements, including income and credit criteria.
Can the Home in Five Advantage Program be combined with other assistance programs?
Yes, the program can be combined with other assistance programs to further support homebuyers in meeting their financial needs. It's advisable to discuss available options with your lender to determine the best combination for your situation.
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Get Started NowIs homebuyer education required?
Yes, all homebuyers must complete an 8-hour homebuyer education course through an Arizona-based HUD Approved Housing Counseling Agency, either in-person or online, and obtain a certificate of completion to present to their lender.
Are there any fees associated with the program?
Standard loan fees apply, including a 1% origination fee plus customary closing costs due at closing. It's important to discuss all potential fees with your lender to understand the total cost of purchasing your home.
What happens if I sell or refinance my home before the forgivable period ends?
If you sell, transfer, or refinance your home before the end of the forgivable period, you may be required to repay a prorated portion of the down payment assistance. The amount due will depend on the length of time you have owned the home and the terms of your forgivable second mortgage.
Is there a first-time homebuyer requirement?
No, there is no requirement to be a first-time homebuyer to participate in the Home in Five Advantage Program. Both first-time and repeat homebuyers who meet the program's eligibility criteria can apply.
Are there occupancy requirements?
Yes, buyers must occupy the home as their principal residence within 60 days of closing. The program is designed to assist individuals and families purchasing a home for personal use, not for investment or rental purposes.
Can I purchase a manufactured home through this program?
The program guidelines specify eligibility for new or existing houses, condominiums, PUDs, or townhouses. It's advisable to consult with your lender to confirm whether manufactured homes meet the program's property requirements.
What is the process to apply for the Home in Five Advantage Program?
To apply, contact a participating lender who will guide you through the application process, including verifying your eligibility, assisting with the completion of necessary documentation, and helping you understand the program's requirements.
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Get Started NowIs there a deadline to apply for the program?
There is no specific deadline to apply for the Home in Five Advantage Program. However, program availability is subject to funding, so it's advisable to begin the application process as soon as you are ready to purchase a home.
Are there any post-purchase requirements?
Homeowners must continue to occupy the property as their principal residence for the duration of the forgivable period of the second mortgage. Renting out the property or using it as a secondary residence may violate program terms and could result in the requirement to repay the assistance.
Is there a minimum borrower contribution required?
While the program provides significant assistance, borrowers may be required to contribute a minimum amount toward the purchase. Specific requirements should be confirmed with your lender.
Can I use this program for refinancing an existing mortgage?
No, the Home in Five Advantage Program is intended for the purchase of a new primary residence and cannot be used for refinancing existing mortgages.
Are there any restrictions on the location of the property?
Yes, the property must be located within Maricopa County, including the city of Phoenix, to be eligible for the Home in Five Advantage Program.
How long does the application process take?
The timeline can vary based on individual circumstances and lender processing times. It's advisable to begin the application process early to ensure timely approval and to address any potential issues that may arise.