Down Payment Assistance Programs
In today’s market, we are still seeing quite a few buyers needing some help to buy a home. Sometimes that means they have funds for down payment, but need closing cost assistance so we negotiate for concessions from a seller. However, some borrowers have good income and credit, just no money saved up. These people can still be good buyers, which is why there are a couple programs for this situation.
Home in 5
One program that’s been around a while is the Home in 5 that sometimes is called Home in 4 also. Essentially this is a grant towards the down payment for an FHA loan. There are credit restrictions with a minimum score of 640 needed and then some other stipulations like income limits too. Debt-to-income ratio also comes into play. One of the best things about this one is that no repayment is required, nor do you have to be a first-time home buyer either. The interest rate will be a little higher than market rate, however.
Pathway to Purchase
This Pathway to Purchase is a conventional program where you can receive up to 10% of the purchase price with a maximum of $20,000 given. Again, you will find various income & credit requirements plus you need to remain in the home for a certain period of time to avoid repayment. The biggest limiting factor here though is there are only certain cities eligible. Some in the West Valley include Avondale, Buckeye, El Mirage, Goodyear and Laveen.
More info on this program can be found HERE.
Both of these programs are for owner-occupant buyers of a primary residence only.
Speaking with a good loan officer is always your best bet so they can properly examine your individual situation, lay out your true options and then you make an informed decision from there.
Please never hesitate with any questions for us @ 623-203-2264 and we can of course put you in touch with one of your suggested loan officers, whom work with these programs every day.