What is the Arizona Is Home Mortgage Assistance Program?
The Arizona Is Home Mortgage Assistance Program is a state initiative designed to provide financial assistance to first-time homebuyers in Arizona, helping them with down payments, interest rate reductions, and closing costs to make homeownership more attainable.
Who qualifies as a first-time homebuyer under this program?
A first-time homebuyer is defined as someone who has not owned real estate in the last three years. This definition ensures that individuals who have not recently owned a home can access the program's benefits.
What types of assistance does the program offer?
The program offers up to $30,000 in assistance for eligible homebuyers at or below 80% of the Area Median Income (AMI), and up to $20,000 for those between 81% and 120% of AMI. These funds can be used for down payments, interest rate buydowns, and closing costs.
How is the assistance provided?
Assistance is provided as a silent second mortgage that is due upon sale of the property. This means there are no monthly payments required for the assistance amount until the home is sold.
Are there income limits for eligibility?
Yes, income limits are based on the Area Median Income (AMI) for the location. Homebuyers at or below 80% of AMI may receive up to $30,000 in assistance, while those between 81% and 120% of AMI may receive up to $20,000.
Is homebuyer education required?
Yes, applicants must complete an 8-hour homebuyer education class and meet one-on-one with a HUD-certified Home Ownership Advisor. This ensures buyers are well-prepared for the responsibilities of homeownership.
Are there specific property location requirements?
Yes, the program is available statewide in Arizona. However, certain components, such as the rural assistance program, are available in specific counties including Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai, and Yuma.
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Get Started NowCan the assistance be used for both new and existing homes?
Yes, the funds can be applied toward the purchase of both new and existing homes, providing flexibility for homebuyers in selecting a property that meets their needs.
Is there a minimum credit score requirement?
While the program details do not specify a minimum credit score, individual lenders may have their own credit requirements. It's advisable to consult with an approved lender to understand their criteria.
Are there any post-purchase requirements?
Homeowners must occupy the property as their primary residence. Renting out the property may violate program terms and could result in the assistance becoming due.
Can this program be combined with other assistance programs?
Yes, the Arizona Is Home Mortgage Assistance Program can be combined with other state and federal programs to further enhance affordability for homebuyers.
What is the process to apply for the program?
Interested applicants should contact an approved housing counseling agency to begin the process, complete the required education, and receive guidance on obtaining the assistance.
Are there any fees associated with the program?
Standard loan fees apply, but there are no additional fees specifically for participating in the Arizona Is Home Mortgage Assistance Program.
Is there a deadline to apply for the program?
As of early 2025, the program has assisted over 350 families, with funding available for up to 500 families. Prospective applicants are encouraged to apply promptly due to limited funding.
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Get Started NowDoes the program have a recapture tax?
The program details do not specify a recapture tax. However, it's advisable to consult with a tax professional to understand any potential tax implications.
Are manufactured homes eligible for the program?
The program details do not specify eligibility for manufactured homes. Prospective buyers should verify property eligibility with an approved lender.
What happens if I sell the home before repaying the assistance?
The assistance is structured as a silent second mortgage due upon sale. Therefore, if you sell the home, the full amount of assistance received will be due at that time.
Is there a maximum purchase price limit?
The program details do not specify a maximum purchase price limit. However, it's advisable to consult with an approved lender to understand any applicable limits.
Can I refinance my mortgage under this program?
The program is intended for the purchase of a new primary residence and does not apply to refinancing existing mortgages.
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.