Home Purchase Assistance in Phoenix AZ
Home Purchase Assistance in AZ
Did this title get your attention? I thought it would. The title is correct, there is a home purchase assistance program available in the State of Arizona. Please do not confuse this program with down payment assistance. This is a common misconception with various state programs that are available to potential buyers looking to buy the homes for sale in Phoenix AZ and the rest of the state. All programs of this type are home purchase assistance programs, not down payment assistance programs.
Funding has been made available through the U.S. Housing and Urban Development (HUD) Neighborhood Stabilization Program (NSP) for potential homeowners in the state of Arizona. This is a financing tool that will make it easier for eligible, credit-worthy homebuyers to obtain mortgages. The Your Way Home AZ Program has been created in order to help homebuyers purchase foreclosed homes for sale in the State of Arizona. The potential home owners and properties must meet certain requirements, including income level, location and purchase price of the property and other conditions.
The program is administered by the Arizona Department of Housing (ADOH). ADOH has designated $20,000,000 of the NSP funds for the Your Way Home AZ Program. Many of the programs requirements are directly mandated by HUD and are non negotiable.
Under the federal legislation and NSP regulations, these funds may be used to “establish financing mechanisms, … including such mechanisms as soft seconds,” to assist in purchasing homes that have been foreclosed upon. Potential home buyers of these homes for sale in the State of Arizona must have a household income no greater than 120% of the median income for the area they intend to purchase a home in. HUD is requiring that the purchase price of the home be at least 1% lower than the appraised value of the home.
Your Way Home AZ will provide a second mortgage to eligible home buyers for up to 22% of the purchase price of the property. The second mortgages will have a term of 5 to 15 years depending on the amount of assistance and will be forgiven at the end of the term if all program requirements have been met and the borrower continues to occupy the property.
If you would like to learn more about this program and if you or your customers qualify, please complete the contact form below.
August 14th, 2009 at 7:24 pm
Thanks for the valuable information
August 14th, 2009 at 7:28 pm
is the “soft second”incentive to keep homeowners in the home in order to revitalize the area? what kind of areas are included in this program?
August 16th, 2009 at 10:34 am
Thanks for the great information! I may be interested in contacting you to get more information.
August 20th, 2009 at 8:33 am
There is definitely an incentive to stay in the home. The soft 2nd mortgage will remain on the property for at least 5 yrs and up to 15 yrs depending on the amount of assistance. This program requires that the property be located anywhere in the state of Arizona. The home must be vacant and previously foreclosed on. the purchase price must be 1% below the appraised value.
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