Dealing with Financing FREE Grant Down Payment Assistance Program

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As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.

Get pre-approved. Sub-primes may be history, but you’ll probably still be shown homes you can’t actually afford. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.

Choose your mortgage carefully. Used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time—and given the current real estate market, you should—taking the points will save you money.

Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with sites like timbateman.realtyinsites.com. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.

FREE GRANT DOWN PAYMENT ASSISTANCE PROGRAM MILESTONES

The Maricopa IDA is proud to announce that through its valued Participating Lenders, the Home in Five Advantage Mortgage Origination Program has now originated over $666 million of mortgage loans to residents of Maricopa County.

That’s right – over a half billion dollars in loans to our residents. We have helped over 4,118 families fulfill their dream of owning their own home.

LoanDepot, d/b/a iMortgage has originated over $76 million of mortgage loans since the beginning of the Home in Five Advantage Mortgage Origination Program in September 2012. Way to go LoanDepot!

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The Industrial Development Authority of the County of Maricopa and The Industrial Development Authority of the City of Phoenix, Arizona have joined together to help homebuyers obtain FHA, VA, or USDA-RD loan financing to purchase a home anywhere in Maricopa County, including the City of Phoenix. Through the Home in Five Advantage program, individuals or families who qualify would be able to obtain a 30-year fixed rate loan, with a non-repayable 5% down payment/closing cost assistance grant. Qualified United States Military Personnel will receive 6% of the original loan amount.

Financing for these loans is available on new or existing homes (one to four units), condominiums, townhouses or manufactured homes on a first-come, first-served basis, only through the Participating Lenders listed below.

Homebuyer Eligibility

Buyers must have a minimum FICO credit score of 640 and maximum 45 debt-to-income (DTI) ratio.

Standard loan guidelines exist for qualification (i.e., adequate income, acceptable credit, and down payment requirement).

All buyers must attend a homebuyer education course and obtain a certificate of completion, and receive a home inspection. A list of some HUD approved homebuyer education counseling agencies can be found at the link:

http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?&webListAction=search&searchstate=AZ

Program Eligibility

Homebuyers may purchase a home anywhere in Maricopa County, including in the City of Phoenix.

Buyers must occupy the home as their principal residence within 60 days of closing.

The program may only be used to purchase a home (i.e., no refinancing).

Income Limits for Eligible Borrowers

Maximum credit qualifying income may not exceed $88,340.

Purchase Price Limit

Maximum purchase price limit in this program is $300,000.

Special Incentives for Qualified United States Military Personnel

Down payment/closing cost assistance of an additional 1% for a total of 6%.

This assistance is a grant and does not require repayment.

“Qualified United States Military Personnel” include Qualified Veterans, active duty United States military, active United States Reservists, and active members of the National Guard.

A “Qualified Veteran” is a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable (as provided in 38 U.S.C. Section 101.

Down Payment Assistance

All homebuyers qualifying for down payment assistance will receive 5% of the original loan amount to be used for down payment and closing costs, which includes lender compensation of a 1% origination fee and 1% discount fee.

Qualified United States Military Personnel will receive 6% of the original loan amount.

This assistance is a grant and does not require repayment.

Simply contact a Participating Lender for details on applying for a Home in Five Advantage mortgage loan and securing the down payment assistance.