If you’re looking to buy in any county in Arizona excluding Pima, the Arizona HFA Preferred down payment assistance program may be for you. This popular loan choice offers up to 5% of the loan amount towards your down payment, up to $16,926.
The Arizona Housing Finance Authority (HFA) created the Arizona HFA Preferred program for individuals or families that want or need down payment assistance, but are able to qualify for a conventional mortgage. The up to 5% assistance is a grant combined with a 95% first loan on a 30-year fix rate mortgage. These loans apply to new or existing homes, condos, or townhouses.
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The Arizona HFA Preferred program is open to first-time and experienced homebuyers with a minimum FICO credit score of 640. The maximum debt-to-income (DTI, or the ratio of all debt including mortgage against income) must be 45% or less. Because this DPA will work in conjunction with a conventional mortgage, standard loan guidelines will be in play, including adequate income, acceptable credit, and down payment requirements.
Additionally, all buyers must attend a homebuyer education course, receiving a certificate of completion. A home inspection is also required. Prospective buyers can find a list of HUD-approved Housing Counseling agencies providing the course locally through hud.gov.
While this program isn’t exclusively for first-time buyers, you cannot own another home.
HFA Preferred is available to buyers purchasing a home anywhere in Arizona not including Pima County. Buyers must occupy the home as their primary residence within 60 days of closing. This program is only to be used to purchase a home and cannot be used to refinance an existing mortgage.
In order to receive the maximum credit, combined income for all borrowers involved must be $92,984 or less. And the purchase price of the home must not exceed $371,936.
Qualifying homebuyers will receive 4% of the original loan amount to be used toward the down payment and/or closing costs. This financial assistance is a grant and does not need to be repaid.
To get more information about the Arizona HFA Preferred down payment assistance program, contact your local loan officer today and discuss your options.