As of June, 2009, a Downpayment Assistance Program is available called the "Find Your Way Home" program. What is great about this program is that is can be used statewide. There are no restrictions based on zip codes. Buyers can use these funds, up to 22% of the purchase price, to supplement their 3.5% minimum FHA loan downpayment. Even with the 3.5% minimum downpayment, a Buyer only needs to come up with 1% of the purchase price towards their downpayment...the remaining 2.5% can be gifted to them from a family member.
As an easy example...say a home is $100,000. A Buyer will need $3500 downpayment. In addition, through this program, they can receive up to $22,000 to use towards more downpayment. Basically, A Buyer's loan amount would then be $74,500 instead of $96,500.
There are certain requirements of this program. A Buyer must take an 8-hour course through the program. I urge you to go online or call to schedule your course time as it is already booking appointments 3 weeks out. There are also income requirements (less is more). Buyers also need to stay in the property for a minimum of 5 years up to 15 years based on the dollar amount granted. Maximum purchase price in both Maricopa and Pinal Counties is $346,250.
This is available to Buyers who are purchasing single-unit property to call their "home". In short, no duplex, triplex, fourplex, or any property purchased to be used as investment property will qualify. However, if you currently own a home, you can qualify as long as your current home is being rented and you can show a rental history for at least 12 months.
There are also property specifications that could create a "snag" in a transaction. Most importantly, the property has to be valued (appraised) for at least 5% more than the purchase price. Arizona's current market trends, especially in Maricopa and Pinal County, would warrant a Buyer's quick response as property inventory is shifting in balance from oversupply to balanced-supply. Couple this with the increase in Buyer activity and pending sales and appraised value does become a factor of concern in this program. With this much free money up for grabs, there is no such word as "wait".
Finally, mainstream America is receiving what we truly deserve, the means to a homeownership end. Hurry..these grant funds are available on a first-come, first-serve basis. Once the money is gone...so is the opportunity! For more information, www.YourWayHomeAz.com or 602.771-1000.
*It is crucial to use the services of a professional, seasoned Realtor when using any type of special financing/down-payment program as it can make the difference between success and, well-- the alternative.