Total Mortgage in Arizona

HOME+PLUS

• Competitive Interest Rates: With Arizona Industrial Development Authority (AzIDA)’s HOME+PLUS program, homebuyers may get stable fixed-rate mortgages that will keep monthly payments reasonable for the next 30 years.
• Financial Assistance: Say goodbye to exorbitant upfront fees with down payment assistance AZ of up to 5% of the principal loan amount. This help comes in the form of a second loan that can be forgiven after three years and doesn't need to be repaid unless the property is sold or the first mortgage (conventional, FHA, VA, or USDA loan) is refinanced.
• Reduced Mortgage Insurance: Being qualified for Arizona Home Plus also entitles you to a reduction in mortgage insurance rates, which further lowers your monthly payments. This results in significant savings throughout the course of the loan.

Eligibility Requirements for HOME+PLUS Program

Although HOME+PLUS has several benefits, it's important to understand the requirements:

• Minimum Credit Rating: To be qualified, you must have a credit score of at least 640. If you choose to purchase a manufactured home, the minimum requirement increases to 680.
• Debt-to-Income Ratio: Depending on the specific type of loan you choose, your debt-to-income ratio (DTI) should be in the reasonable range, usually between 45% and 50%.
• Income Restrictions: Your yearly income must meet the recognized income limit, which is now $126,351.
• Homebuyer Education: Information acquisition is essential. You must complete the homebuyer education course before proceeding with the Arizona Home Plus program.
• Property Type: The program is applicable to single-family homes, duplexes, condos, townhomes, and even manufactured homes located in Arizona.
• Primary Residence: The property you acquire must be occupied as your primary home.

Home in Five Advantage Program

This special program is presented by The Maricopa County Industrial Development Authority (MCIDA) and Phoenix IDA. It is offered to low—to moderate-income groups so they can also own a home in Maricopa County. Borrowers can get a 30-year fixed-rate traditional, VA, FHA loans in Arizona. Along with this, they can also get a three-year second forgivable loan that can be utilized for down payment and closing costs. Repayment isn’t required unless your home is sold or the first loan is refinanced within the first three years.

The Qualifying criteria for this Arizona Down payment assistance program are mentioned below:

• Minimum credit score: 640
• Annual Income: Under $138,600
• DTI Ratio: Not more than 50%
• Miscellaneous:
  • Must Complete a homebuyer education course
  • Should Use the purchased home as a primary residence
  • Shift in the newly bought home within 60 days of closing
  • The property should be a townhouse, single-family residence, or a condominium

This Arizona down payment assistance program also serves an extra 1% in down payment and closing costs for qualified military personnel, teachers, first responders, and people with annual income less than $49,500 who are purchasing their first home in the state.

The program's BOOST feature offers an extra 0.5 percent down payment assistance AZ for buyers in low-income neighborhoods.

Tucson and Pima County Down Payment Assistance AZ

This program helps first-time homebuyers in Tucson or Pima County by offering up to 20% of the purchase price as down payment assistance. You need to contribute at least $1,000 and meet income requirements. Completing homebuyer counseling is also necessary. The maximum purchase price is $302,100 for existing homes and $358,835 for new construction.

FHA Loans

These are ideal if your credit score is on the lower side or if you have limited savings. They need a credit score of at least 580 and allow for a down payment as low as 3.5 percent.

VA Loans

If you're a military member or a veteran, you may be eligible for a VA loan, which doesn't require a down payment.

USDA Loans

These loans don't mandate a down payment but are restricted to borrowers purchasing property in USDA-eligible rural areas. Usually, a credit score of 640 or higher is needed to qualify.

Good Neighbor Next Door program

Run by HUD, this program offers a low down payment option for homes in specific areas, along with the opportunity to save 50 percent on the purchase price.