In order to aid individuals and families achieve their dreams of homeownership, the Pima Tucson Homebuyer’s Solution down payment assistance program was created for buyers looking to own in Pima County, Arizona, including Tucson. This DPA program can extend up to 6% of the loan amount to qualified participants. The grant works in concert with an VA, USDA or FHA 30-year fixed rate mortgage, or a conventional loan.
Much like the Home in Five, Home Plus, and Arizona HFA Preferred programs, the Pima Tucson Homebuyer’s Solution is a great down payment assistance choice for first-time and experienced purchasers who have found their dream home within Pima County, Arizona. A must for this program is buyers must occupy the home as their principal residence within 60 days of closing. This is open only to purchasing a home; refinancing, cash withdrawal, and other mortgage possibilities is not an option.
For borrowers selecting a government-backed loan— VA, USDA, or FHA— the choices are to received 2.5%, 3%, 4%, 5% or 6% of the note amount to be applied toward the down payment, closing costs, or prepaid items. Those opting for a conventional loan may choose 3%, 4% or 5% of the loan amount. The assistance can be combined with HOME funds or Mortgage Credit Certificates.
There is no purchase price limit associated with this DPA program. And because this is a grant, no repayment is necessary.
As this program works with a conventional or government-backed loan, standard regulations will exist and vary based on the loan selected, such as having adequate income— but not that which exceeds $105,291 annually; acceptable credit— a minimum of 640 FICO score, though recipients may not receive the full 6% without at least a 660 score; and remitting a sufficient down payment. The debt-to-income (DTI), ratio less than 45%, meaning the amount owed— credit cards, auto, student, or other debt (including the loan)— must be less than 45% of the income of the borrowers.
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.
The Pima Tucson Homebuyer’s Solution can be used with the purchase of a new or existing residential, one-to-four unit(s) condo or townhomes— detached or attached.
To learn more about the Pima Tucson Homebuyer’s Solution down payment assistance program, contact your local licensed loan officer to determine if this or another DPA program is the right one for you.