Last week I reported that Conventional Financing Loan Limits for 2018 have been raised to $453,100. Well, now we know the new FHA Loan Limit in Maricopa County will be $294,515 for a single unit dwelling. This makes up a large segment of our market and especially helps entry level first-time home buyers.

For those needing a little help with Down Payment Assistance, the rules have changed a little. The Home Plus  & Home in 5 Programs now will be forgivable second liens. Below are some more details and revisions to both options.

HOME in 5

  • Increasing their income limits up to $92,980
  • Increasing the purchase price limit to $371,930  (big jump)
  • Will be a grant that now is placed as a forgivable second mortgage for a term of 3 years

 

Home Plus

  • Income limit remains $92,980
  • Purchase Price $371,936
  • Will be a grant that now is placed as a forgivable second mortgage for a term of 3 years

 

Description of lien restrictions:

If the 1st lien is refinanced or paid off during the first 3 years, the amount left on the second becomes due.

Instead of now, where the grant is never repayable, the assistance funds for both of these programs could become repayable.

 

The deferred soft second mortgage will carry a term of 3 years, have no interest, no payment and be forgiven monthly at a rate of 1/36th of the total lien amount over the term.

 

So long as the buyer lives in the home for 3 years and does not pay off the mortgage or refinance it, the second will disappear completely and then they will be free to  sell or refinance the first mortgage after that.

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We are located on the Northwest corner of 75th Avenue & Thunderbird Road in Peoria, which is anchored by Basha’s Grocery Store. We are on the end of the center towards 75th Avenue and just across from BBVA Compass Bank (suite 9). You’ll see our sign on the building. Come on in, we would love to see you.