What down payment assistance can you get in Arizona?
June 13, 2022 at 12:30 AM
Image of someone applying for mortgage down payment assistance in Arizona.

As the housing market gets more competitive, saving a down payment for many properties can feel overwhelming. When you have every other aspect of your finances in order, pulling together 20 percent of a mortgage doesn’t have to stop you from buying a property. Down payment assistance programs in Arizona help people without substantial savings to buy a home. There is national, state, and even municipal down payment assistance. An experienced broker will help you find the best program for your budget and loan.

Home Plus

The Home Plus program is structured as a silent second mortgage for home buyers. It’s essentially an additional loan taken out simultaneously as the mortgage. However, the “silent” part means that interest doesn’t accumulate, and borrowers don’t have to make payments on the loan.

As long as the buyer spends three years in the property, the Home Plus loan is forgiven.

You can use Home Plus financing to cover closing costs or potentially the entire amount of your down payment. There’s no first-time buyer requirement, so as your family grows or you’re ready to upgrade, you can re-qualify for the Home Plus program.

Home Plus down payment assistance requirements:

  • Maximum income of $105,291
  • Maximum debt-to-income ratio of 50 percent
  • Minimum FICO score of 640

Home Plus typically awards between three and five percent of the loan amount, with an extra percent available for veterans.

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Home in Five

The Home in Five is a grant for home buyers with an income under $112,784. Like the Home Plus program, this is down payment assistance in Arizona that borrowers don’t need to pay back. It is awarded to qualified home buyers if they live in the property as their primary residence.

The Home in Five grant typically covers four percent of the loan amount, with an additional percentage for K through 12 teachers, first responders, and veterans.

WISH Down Payment Program

Low to middle-income families ready to purchase a home but struggling with the down payment may qualify for the WISH grant, which awards up to $22,000 in down payment assistance and helps with closing costs.

Qualification for the WISH program depends on the availability of funds, borrower contribution to the down payment, and household income.

Federal Housing Authority (FHA) loans for first-time homebuyers

Lenders typically require 20 percent as a downpayment for a loan to minimize lending risks. But for many first-time homebuyers, saving that amount of cash plus closing costs and the emergency savings required for mortgage approval is impossible. To make home ownership more equitable for first-time buyers, the Federal Housing Authority created FHA loans with less strict requirements for borrowers.

To qualify for an FHA loan, borrowers must:

  • Minimum 500 FICO score, 580 preferred
  • Debt to income ratio of less than 43 percent
  • The home must be the borrower’s primary residence
  • Must have proof of employment

The FHA loan does require that borrowers carry mortgage insurance but only asks for three to five percent for a downpayment.

Use Atlas Crown Mortgage as your broker and get professional help finding down payment assistance programs in Arizona.

The home buying process is intimidating, especially for first-time homebuyers. But it doesn’t have to be a complicated or stressful process. The Atlas Crown Mortgage team works hard to make getting a mortgage as straightforward as possible for clients. As brokers, we work with nationwide lenders to connect homebuyers with loan products that are ideal for their needs. As experts in mortgage loans, we make buying a home painless and fast. We work with a wide range of borrowers, from VA and FHA loans to traditional and limited documentation loans.

Contact Atlas Crown Mortgage to work with a mortgage broker who knows Arizona’s down payment assistance programs.

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