Last Fall our CTX Mortgage branch signed up with the Home in Five down payment assistance program. I attended the training program earlier this week and in addition to learning how this program works became a participating lender. To become a participating lender you must attend the training in order to help borrowers with this loan. From what I know, I am now part of a select group of loan officers in the Phoenix area who are able to offer this down payment assistance program to deserving borrowers.
The Home in Five program provides 5% down payment assistance to any homebuyer who meets the income and acquisition price limits. The household income requirements range depending on the area within Maricopa county. The program targets borrowers with moderate to lower incomes. The other factor that plays a significant role in the program is the area where the property is located.
The program defines three distinct areas within Maricopa county where the program can be used: non-targeted areas, targeted areas and priority areas. These areas are defined by the census tract number (not zip code) and is only for primary residence purchases in Maricopa county. If you’re curious about a particular property feel free to contact me and I’d be happy to check it for you. The income limit and property purchase price limit is then defined per the area your property falls under. So for example if your property happens to be in a targeted area then the income and acquisition price is a bit higher compared to a non-targeted area. A priority area has an even higher limit (since it’s a priority area).
This program is open to all kinds of buyers and you don’t have to be a first time homebuyer. Remember the standard definition of a first time homebuyer is anyone who has not had an ownership interest in a residential property within the past three years. So, if you’ve owned property before three years ago you will be classified as a first time homebuyer. If you are not a first time buyer then to use the Home in Five program you must purchase a property in a targeted or priority area.
Home in Five allows for both newly-constructed or existing homes and can only be used to purchase a home (no refinances allowed). While the most attractive feature is the 5% down payment assistance, the interest rate is also below market. The program works in conjunction with a VA, FHA or Fannie/Freddie loan and as such standard loan guidelines apply. Just so you know the money for this program comes through the Single Family Mortgage Revenue Bond Program administered by the IDA’s of City of Phoenix and Maricopa County.
This is a very brief overview of the program. Feel free to contact me and I can e-mail you a brochure or answer any questions you may have.
Welcome to the Arizona Mortgage Guru blog, a great resource for all your home financing needs. If you're new here and like the content, you can subscribe to my RSS feed to get regular updates on all things related to mortgages. Thanks for visiting.
Funds Reallocated in Downpayment Assistance Program
More Money For Down Payment Assistance Program
Over $3M in Down Payment Money Used Up in One Day
Related posts brought to you by Yet Another Related Posts Plugin.
on Feb 24th, 2008 at 9:42 am
[...] loan programs. Not a risky subprime or teaser rate. These include the Maricopa County ”Home in 5” Bond Program and various Down Payment Assistance programs like [...]
on Feb 29th, 2008 at 11:13 am
[...] we can. We have a down payment assistance program for both first time home buyers and those folks willing to purchase in targeted [...]
on Mar 11th, 2008 at 10:22 am
[...] buyer or are willing to purchase within a certain restricted/targeted area than you can use the Home in Five bond program for the down [...]
on Mar 14th, 2008 at 3:03 am
It’s good that the Home in Five program is available to all buyers and not just restricted to first time buyers. That’s what I suppose attracts most buyers.
on Mar 20th, 2008 at 6:42 am
[...] 3% towards closing costs. Also be aware that the FHA program can be used in conjunction with the Home in Five (bond program), which provides up to 5% down payment [...]
on Apr 17th, 2008 at 11:57 am
I have a quick question…. The Home in Five program sounds very good and promising…. but I am having a hard time finding information on it like where to apply, what are the criterias to be approved for the program… Can you help?
Thanks- Kim
on May 4th, 2008 at 1:16 pm
[...] downpayment assistance program, which we participate in, the Home in Five Program (only for Maricopa county) had been running out of funds recently. Actually to be more precise [...]
on Jun 16th, 2008 at 3:50 pm
[...] receive a lot of questions on the Home in Five Down Payment Assistance Program. The most popular question is of course regarding the availability of funds for non-targeted areas. [...]
on Jun 21st, 2008 at 4:13 am
Greetings
Greetings
I am a Canadian living and working in the Abu Dhabi, United Arab Emirates. I am seeking pre-approval mortgage for future purchases of investment property in the USA.
Do you assist Canadians with borrowing for foreign investments? If so, could you please provide details of how I may apply for loan consideration.
I do have assets back in Canada and have excellent credit rating here in the UAE.
Any advice you may have for me in terms of raising funds for a downpayment for the US market would be greatly appreciated.
Thank you.
on Jul 29th, 2008 at 7:27 pm
[...] an e-mail stating that about $3.5 Million was now available for the non-target areas of the Home in Five Program. Money previously assigned to targeted areas were now released as non-target, meaning you [...]
on Aug 1st, 2008 at 10:04 am
Will your program be impacted with the changes being made to FHA DPA beginning 10/1/08?
on Aug 1st, 2008 at 12:52 pm
Deb,
Yes it will be. Details forthcoming.
Thanks for stopping by.
on Oct 6th, 2008 at 4:56 am
I really would like to buy a home again because I am renting and pay $1300 a month and my landlords are horrible mean people. My fiance pasted away one year ago today and I have never missed a payment but my utility bill has been outrageous due to ac and they will not do anything about it. I have steady income and if I have to move again I want to move into my own home. Please help if you can. Thank you