Arizona First Time Home Buyer Program

If you are a first time home buyer you are faced with many challenges when looking for mortgages.  The biggest challenge is finding a relevant mortgage program.  For example, Arizona has its own first time buyer program.  The Your Way Home AZ grant is one program which gives down payment money to purchase foreclosed homes in Phoenix.

Mortgage Grant

The Your Way Home AZ grant program will give up to 22% down payment to a qualified first time buyer.  HUD has complete guidance over this grant program which means a first time buyer must qualify for an FHA loan.  In Arizona FHA loans require a minimum down payment of 3%.  The down payment must come from your funds or be gifted by family members.

The proper structure for this first time buyer grant is 75/22/3.  This reflects a 75% first mortgage, 22% second mortgage (grant program) and your 3% down payment.  The 22% second mortgage is silent which means you do not make payments.  Lending guidelines can be very confusing.  It is always best to speak with a local mortgage company before you look into an Arizona mortgage grant program.

Requirements

Your Way Home AZ has a few more requirements you need to be aware of.   A major part of the Your Way Home AZ grant is meeting with a housing counseling agency.  Your housing counselor will be responsible for two main areas.  The first area is to evaluate your grant documentation and AUS findings which is provided by your lender.  If all requirements are met your counselor will schedule you for a first time buyer education program.

Keep in mind that this article does not account for all grant requirements.  There are additional grant requirements some of which are unique to your situation.  Not all lenders are approved to originate the Your Way Home AZ grant program.  You can find approved Arizona mortgage lenders here.

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