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Pathway to Purchase To Help Homebuyers in Foreclosure-Hit AZ Cities

Pathway to Purchase To Help Homebuyers in Foreclosure-Hit AZ Cities

In order to provide qualified homebuyers a “Pathway to Purchase” (P2P) their home, the Arizona Department of Housing (ADOH), in conjunction with the Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC), to provide down payment assistance toward a primary residence in seventeen specific municipalities in AZ. The goal is to provide incentive to buyers who have been avoiding housing markets hit hardest by foreclosures.

FIND A PATHWAY TO PURCHASE LOAN OFFICER

The ADOH P2P Down Payment Assistance Program aims to lure buyers with an appealing 30-year fixed-rate mortgage with a Down Payment Assistance (DPA) second mortgage equal to a 10% of the purchase price with a cap of $20,000.

The DPA second mortgage is a five-year, forgivable lien against the subject property at a 0% interest rate with no required monthly payments. The DPA can be used toward the down payment and/or closing costs. DPA is only available in accordance with a Pathway to Purchase first mortgage and is funded by AHFPFC/ADOH at the mortgage loan closing.

Homebuyer Eligibility Requirements

    • Mortgage for the purchase of an owner-occupied, primary residence only;
    • Borrower(s) income cannot exceed $92,984;
    • Purchase price must be equal to or lower than $371,936;
    • Fannie Mae HFA Preferred mortgages only;
      • Maximum LTV of 95.0%;
      • Minimum Credit Score of 640;
      • New construction not allowed— must be an existing single-family, townhouse, or condo;
      • 12% charter minimum MI on LTVs 90.0%, 16% charter minimum on LTVs 90.01-95.0%;
        • (MI payment options, borrower paid monthly, single and split premium)
      • Maximum 45% debt-to-income ratio and Fannie Mae HFA Preferred (variation of FNMA HomeReady) underwriting guidelines apply;
    • Completing a pre-purchase homebuyer educational course through a HUD-approved education provider: online, in-person, or over the phone.

P2P Eligible Cities

The program is limited to the following cities:

    • Arizona City;
    • Avondale;
    • Buckeye;
    • Casa Grande;
    • Coolidge;
    • Douglas;
    • El Mirage;
    • Fort Mohave;
    • Goodyear;
    • Huachuca City;
    • Laveen;
    • Maricopa;
    • Red Rock;
    • Sierra Vista;
    • Snowflake;
    • Tucson; and
    • Yuma

The first required step for the Pathway to Purchase program is working through one of ADOH-approved and participating mortgage lender. Said lender will be your contact point throughout the whole process, working with the buyer to obtain a program-qualifying mortgage and registration for the down payment assistance.

FIND A PATHWAY TO PURCHASE LOAN OFFICER

Funding for the Pathway to Purchase DPA Second Mortgage Program is provided by the U.S. Department of the Treasury through the Troubled Asset Relief Program; Hardest-Hit Fund. The P2P Program has a $48-million-dollar commitment and is available on a first come first serve basis.