Home Plus is the program we will be discussing in this blog. Call our #1 preferred Loan Officer, Marian Matache with Mortgage in AZ, LLC and he can get you started with the correct Down Payment Assistance Program for you -
Achieving the dream of homeownership in Arizona is within closer reach thanks to the Home Plus down payment assistance program. This initiative, managed by the Arizona Department of Housing, aims to support prospective homebuyers by providing financial assistance for down payments and closing costs. Here’s everything you need to know about this valuable program:
What is Home Plus? It's a Down Payment Assistance Program
Home Plus is a state-funded program designed to make homeownership more accessible by offering assistance with down payments and closing costs. This assistance can be paired with a variety of mortgage loan types, including conventional, FHA, VA, and USDA loans, providing flexibility to meet the needs of different buyers.
Key Features and Benefits
Financial Support: Qualified homebuyers can receive up to 5% of the loan amount for down payment and closing costs. This can significantly reduce the upfront cash required to purchase a home.
Forgivable Assistance: Some Home Plus programs offer forgivable loans, meaning a portion of the assistance is gradually forgiven over time. This reduces the overall financial burden on the homeowner.
The DPA assistance under the Home Plus program is provided in the form of a second mortgage with the following terms/conditions:
Three-year, no interest, no payment, deferred soft second mortgage, forgiven monthly at a rate of 1/36 over the term of the lien.
The DPA second mortgage is fully forgiven after the 36th month (3-years).
The homeowner can choose to refinance or sell their Home Plus first mortgage at any time, however, if a refinance or sale occurs in the first 36 months, the DPA 2nd lien would need to be paid (note amount less the number of forgiven months from closing date).
Arizona IDA does not subordinate or provide exceptions to the DPA repayment terms.
3. Income Limits: There are income limits depending on household size and the county of the purchased property. This ensures that the program benefits those who need financial assistance the most.
4. Homebuyer Education: Completion of a homebuyer education course is required, which helps buyers understand the responsibilities and financial implications of homeownership.
How to Qualify
To qualify for Home Plus, applicants must meet certain criteria:
Credit Score: A minimum credit score is required, which varies depending on the loan type.
Income Requirements: There are specific income limits based on the number of people in the household and the county where the property is located.
Home Purchase Price: There are also limits on the purchase price of the home.
Why Choose Home Plus?
Financial Relief: The program provides substantial financial assistance, making homeownership more affordable and attainable.
Flexibility: Compatible with various loan types, Home Plus ensures that buyers have options that suit their financial situation and needs.
Community Impact: Homeownership stabilizes families and communities, fostering a sense of belonging and investment in local neighborhoods.
How to Apply
Applying for Home Plus is straightforward:
Find a Participating Lender: Work with a lender who is approved to offer Home Plus assistance. They will guide you through the application process.
Complete Homebuyer Education: Take a homebuyer education course from an approved provider. This course is mandatory and helps you understand the responsibilities of homeownership.
Submit Application: Your lender will assist you in completing and submitting the necessary paperwork to the Arizona Department of Housing.
Conclusion
The Home Plus down payment assistance program is a game-changer for prospective homebuyers in Arizona, providing crucial financial support to help make homeownership a reality. By partnering with approved lenders and fulfilling program requirements, individuals and families can overcome financial barriers and achieve their dreams of owning a home. The Home Plus home buyer down payment assistance program is self-funded from funds raised in the national capital markets and income generated from our program operation. As such, the Home Plus program is continually funded without a sunset date. Operating as a true public / private partnership, we can create a pathway to homeownership through the use of down payment / closing costs assistance WITHOUT the use of taxpayer funds. For more information and to see if you qualify, visit Home Plus Arizona today.
Sources:
Home Plus Arizona Official Website: Home Plus Arizona
Arizona Department of Housing: Arizona Department of Housing
Information provided by Home Plus Arizona regarding program details and eligibility
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