Arizona HOME Plus Home Buyer Down Payment Assistance Program

The Arizona HOME Plus Home Buyer Down Payment Assistance Program is a statewide initiative designed to assist eligible homebuyers in Arizona by providing financial support for down payments and closing costs. This program aims to make homeownership more accessible and affordable for low to moderate-income individuals and families.

Benefits

Offers up to 5% of the loan amount in assistance, which can be used to cover down payments and closing costs.
Available for various loan types, including FHA, VA, USDA, and conventional loans.
Provides a 30-year fixed-rate mortgage with competitive interest rates to ensure stable and predictable monthly payments.
The assistance is structured as a forgivable loan, with no repayment required if the borrower remains in the home for a specific period.

Eligibility Requirements

Applicants must meet income limits, which vary based on the county and household size.
Available to both first-time and repeat homebuyers, with some restrictions based on prior homeownership.
The property must be located in Arizona and serve as the buyer's primary residence.
Participants must have a minimum credit score of 640 and meet lender-specific underwriting criteria.
Completion of a homebuyer education course is required to ensure preparedness for homeownership.

Additional Information

The HOME Plus Program is designed to reduce the financial barriers to homeownership by providing significant financial assistance and favorable loan terms. Managed by state housing authorities, this program empowers eligible buyers to achieve the goal of owning a home while maintaining financial stability. Prospective participants are encouraged to work with approved lenders to determine their eligibility and start the application process.

Frequently Asked Questions About Our Program

What is the Arizona HOME Plus Home Buyer Down Payment Assistance Program?

The Arizona HOME Plus program is a statewide initiative that provides eligible homebuyers with a 30-year fixed-rate mortgage and down payment assistance (DPA) ranging from 0% to 5% of the loan amount, depending on the type of mortgage selected. This assistance can be applied toward the down payment, closing costs, or a combination of both.

Who is eligible for the HOME Plus program?

Eligibility for the HOME Plus program requires that the borrower's annual income does not exceed $136,609. Additionally, at least one borrower must complete a homebuyer education course before closing. While the program is primarily aimed at first-time homebuyers, it is available to all qualifying buyers purchasing a primary residence in Arizona.

How does the down payment assistance work?

The down payment assistance is provided as a silent second mortgage, which is forgiven monthly over a three-year period. This means that as long as the borrower remains in the home and does not refinance or sell within the first three years, the assistance does not need to be repaid.

What types of mortgages are available through the HOME Plus program?

The program offers various mortgage options, including conventional loans, FHA, VA, and USDA-RD loans. This variety allows borrowers to select the mortgage type that best suits their financial situation and homeownership goals.

Is there a minimum credit score requirement?

Yes, the minimum FICO credit score required is 640. However, certain loan types or specific circumstances may necessitate a higher credit score. It's advisable to consult with an approved lender to understand the requirements for your situation.

Are there any debt-to-income ratio limits?

Yes, the program typically requires a maximum debt-to-income (DTI) ratio of 50%. This means that your total monthly debt payments, including the mortgage, should not exceed 50% of your gross monthly income.

Can the HOME Plus assistance be combined with other programs?

Yes, the HOME Plus program can be combined with other assistance programs, such as the Mortgage Credit Certificate (MCC) Program, which offers a federal income tax credit of up to $2,000 to qualified borrowers. Combining programs can further enhance affordability.

Don't miss out!

Check out our program and get started today.

Get Started Now

Are there any property requirements?

Eligible properties include single-family homes, townhomes, condominiums, and manufactured homes, provided they meet specific guidelines. The property must be located in Arizona and serve as the borrower's primary residence.

Is there a purchase price limit for homes?

Yes, there are purchase price limits that vary by county and loan type. For example, the maximum loan amount should not exceed $396,680. It's important to verify the current limits applicable to your desired property's location.

What is the process to apply for the HOME Plus program?

To apply, you should contact an approved lender who will guide you through the application process, including verifying eligibility, completing necessary documentation, and understanding program requirements. The lender will also register you for the HOME Plus assistance.

Is homebuyer education required?

Yes, all homebuyers are required to complete a pre-purchase homebuyer education course before closing. This education helps prepare buyers for the responsibilities of homeownership and is a program requirement.

Are there any fees associated with the program?

Standard loan fees apply, and each lender establishes their own fees, which can include processing, underwriting, and origination fees. These fees can vary between lenders, so it's advisable to discuss them with your chosen lender.

Can I use the HOME Plus program if I own another property?

While you do not have to be a first-time homebuyer to qualify for the HOME Plus program, current ownership in other real estate could restrict the number of available program options. It's important to discuss your specific situation with your lender.

What happens if I sell or refinance my home within the first three years?

If you sell or refinance your home within the first three years, you may be required to repay a prorated portion of the down payment assistance, as it is forgiven monthly over the three-year period.

Don't miss out!

Check out our program and get started today.

Get Started Now

Are there occupancy requirements?

Yes, the property must be occupied as your primary residence. Renting out the property or using it as a second home is not permitted under the program guidelines.

Can I purchase a newly constructed home with the HOME Plus program?

Yes, newly constructed homes are eligible, provided they meet the program's property requirements and purchase price limits.

Is there a limit to the number of times I can use the HOME Plus program?

There is no specified limit to the number of times you can use the HOME Plus program. However, each time you apply, you must meet all current eligibility requirements, and the property must be your primary residence.

Does the program have a recapture tax?

The HOME Plus program does not have a Mortgage Subsidy Recapture Tax. This means you won't face additional tax liabilities specifically due to using this assistance program.

Can I use the assistance for investment properties?

No, the HOME Plus program is intended for owner-occupied primary residences only. Investment properties and second homes are not eligible for this assistance.

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.