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
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- 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:
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- 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.