The Arizona Department of Housing (ADOH) has released Your Way Home AZ. This statewide program was developed to assist homebuyers purchasing foreclosed homes in select areas, help rehabilitate housing developments, and stabilize neighborhoods. Nine community partners – the state of Arizona, Maricopa County, Pima County, and the cities of Avondale, Chandler, Glendale, Mesa, Phoenix, Surprise and Tucson – have teamed up to use Neighborhood Stabilization Program (NSP) funds for this purpose.
Each partner has a slightly different program.
File the states program of giving 22% of the purchase price in free money under unbelievable but true. So here goes…(well at least the short overview)
The State of AZ received an initial 20 million from HUD for Home Purchase Assistance and here are the rules for you to participate.
- Assisted properties MUST be foreclosed or abandoned per HUD definitions. The Arizona Department of Housing will only assist on foreclosed and vacant homes.
- Purchase subsidy only available to homebuyers with incomes not greater than 120% of median (by county) and it must be their primary home.
- Homebuyer must complete homebuyer education
- Purchase price must be discounted at least 5% from current appraised value
- The 22% loan (silent second) of the purchase price with zero percent interest and no monthly payments is forgivable if the homeowner remains in the property for the affordability period (5 years for assitance of $15,000 or less, 10 years for assistance of $15,001-$40,000 and 15 years for assistance of more than $40,000
- The Homebuyer must pay at least 3% down payment of which at least 1% must be their own money that is sourced and seasoned for 60 days; the rest can be a gift (Please note – this was set up for conventional loans but we have not found any investors yet with less than 5% down requirement at this time). I would assume the majority of these purchases will be with FHA loans with 3.5% down which at least 1% must be their own money that is sourced and seasoned for 60 days, the other 2.5% can be a gift from a HUD approved non profit or any other HUD approved source like or Mom and Dad etc.
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