Down Payment Assistance Home Purchase Grants

Talbot Real Estate Team Understands Arizona's Grant
Home Buyer Assistance Programs

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Home in 5

Down Payment Assistance in Arizona

What is Down payment Assistance?

Down payment assistance, also known as, home buyer assistance or home purchase grants are all terms used to describe a variety of programs which charter banks and municipalities use to provide funds to be used for home buyer assistance.  These programs come in the form of grants which pay down payment and closing costs toward the purchase of a home.  Home buyer assistance grants are often funded by banks who must comply with requirements imposed by the Community Reinvestment Act of 1977 (CRA).  The stipulations of the CRA are still in effect today.  In short, almost all banks are chartered with the federal reserve.  As part of the CRA, charted banks are required to reinvest some of their profits back into the communities in which they are chartered.  These investments are often presented as down payment assistance programs which help folks pay for the cost associated with buying a home.  Likewise, municipalities will also raise money by issuing bonds to create and support home buyer down payment assistance programs.  These programs are perpetuated and paid for by interest and fees earned from the very mortgages that were created. 

It is often thought these programs are only for less than desirable homes, in bad areas.  This is not true at all.  Down payment assistance programs in Arizona apply to any area or any home that a buyer can qualify for.  There is a purchase price limit of approximately $400,000.  Applicants are also eligible with income levels as high as $105,000 per year.  Some programs also do not require buyers be first time home buyers.

See just how jam packed with benefits and incentives down payment assistance programs in Arizona really are.

Opportunities – Benefits – Requirements

There are many choices for down payment assistance home purchase grant programs in Arizona which offer a variety of benefits and incentives; as well as, different qualifying requirements.  It takes an experienced knowledgeable Real Estate Professional to know the differences of these Down Payment assistance programs and how those differences apply to your situation.  Different programs cater to different income and debt levels; as well as, price ranges and credit scores.  We’ll help you sort out the option that is best for you.  

Home Buyer Assistance can be provided in the form of:

      – Grants
      – Reduced or eliminated mortgage insurance
      – Higher debt-to-income ratios (helps you qualify for a home)

Home Buyer Assistance Grants Pay For:

       – Down payment
       – Closing costs AND
       – Can be used to buy down your interest rate

You are eligible for Down Payment Assistance in Arizona…

  • Without Area Restrictions
  • If you make less than $105,000 per year
  • If you are shopping for any home less than $400,000
  • If your credit score is 640 or greater
  • For what your income and debt will allow – Check Eligibility and Get Started

Here’s how down payment assistance programs in Arizona work… the process is simple.

  • Make sure you fall within the required program limits for income and purchase range – see down payment assistance program details and requirements [this will scroll link to the section with the details of each program]
  • Apply to find out your purchasing power and program eligibility – This can be done as a casual overview of your income and expenses – click here,  or for a more formal specific pre-qualification – call us at 888.339.8889
  • Review options provided by a member of our team
  • Formally apply for your down payment assistance home loan and receive quote estimates for your monthly payment and the amount of down payment assistance you will receive
  • Finalize your pre-qualification with an official letter from a licensed mortgage professional.
  • Search for homes
  • Make offers knowing your Initial home purchase expenses are covered 
  • Grants funds are applied at closing    

Talbot Team Has You Covered on Down Payment Assistance in Arizona
We'll Help You Sort Out Which Program is Right for You

We service down payment assistance programs in the following Arizona cities:

Anthem

Avondale

Buckeye

Chandler

El Mirage

Gilbert

Glendale

Goodyear

Mesa

Peoria

Phoenix

Scottsdale

Sun City

Surprise

Tempe

Tolleson

Live outside these areas?  Contact us. we will refer you to an agent in your area who is knowledgeable and experienced in down payment assistance programs.

Down Payment Assistance Program Details and Incentives

Home in 5

Home in 5

With a debt to income ratio of up to 59%, this down payment assistance program is designed for those carrying more debt than some of the other grant programs.  This FHA based program has terms that carry fixed monthly mortgage insurance at .85% of loan amount.  Minimum credit score requirements of only 640, an income limit of $105,000 and maximum purchase price of $381,374, allows this program to be  available to the masses.  Play your cards right and you won’t have to pay closing costs or down payment with Home in 5   

Program Benefits:

  • Max Income: $105,000
  • Max Purchase: $381,374
  • Grants Up to: 5% (of Purchase Price)
  • Grants Pay: Down PMT & Closing Costs
  • Credit as-low-as 640
  • Debt-to-Income: Up to 59%
  • Mortgage Insurance: Fixed FHA Rate .85%
  • Other Restrictions: None    

Home Plus

Home Plus conventional loan programs provide benefits to buyers who can qualify with lower debt-to-income ratios and good credit. The benefit is  significantly lower mortgage insurance (which is credit score sensitive).  With good credit and low debt this option will save buyers money in their monthly payment; as well as, pay your down payment and closing costs.

Program Benefits:

  • Max Income: $105,291
  • Max Purchase: $396,680
  • Grants Up to: 5% (of Purchase Price)
  • Credit as-low-as 640
  • Debt-to-Income: Up to 45%
  • Mortgage Insurance: Credit Sensitive
  • Other Benefit: NO 1st Time Buyer Req.

CRA Home Loan Program

CRA Community Reinvestment Act loans are the best kept secret for those who earn less than $62,240 per year.  This loan allows for a 3% down payment and NO MORTGAGE INSURANCE.  In addition, the bank will pay up to $2,500 of your closing costs.  You can do all this with only a 640 credit score.  You will have to have pretty tight finances however, this loan only allows for a 43% debt to income ratio.

Program Benefits:

  • Max Income: $62,240
  • Max Purchase: $368,000
  • No Down Payment (3% Financing)
  • Grants Up to: $2,500 for Closing Costs*
  • Credit as-low-as 640
  • Debt-to-Income: Up to 43%
  • Mortgage Insurance: None
  • Other Restrictions: None  

Pathway To Purchase

The benefits from Pathway to Purchase are probably the best terms offered in any home purchase assistance program available in the Greater Phoenix Metro area.  Offering a 10% (of purchase price) grant (up to $20,000) this grant will reduce your principle balance after it has paid all down payment and closing costs. Unfortunately, this porgrams is only available in a few zip codes.  Those being: 85301,85042,85016,85017,85051,85041 *

*  Available in other zip codes outside Maricopa County 

Program Benefits:

  • Max Income: $92,984
  • Max Purchase: $371,936
  • Down Payment: 5% Paid by  Grant
  • Grants Up to: 10% of Purchase Price
  • Credit as-low-as 640
  • Debt-to-Income: Up to 45%
  • Mortgage Insurance: Reduced Coverage
  • Other Restrictions: Limited Zip Codes

Chenoa Fund

The Chenoa Fund down payment assistance program takes Home in 5 one step beyond.  The  extra benefit offered by Chenoa is that it has no set income limit.  Chenoa does have a 5 year silent second mortgage that does not have to be repaid if you own the home for at least 5 years.  This lien is the amount of assistance funds that have been awarded.  20% of the lien is released every year for 5 years until it is extinguished.  This reduces the balance for the amount of the funds granted over time.

Program Benefits:

  • Max Income: No
  • Max Purchase: $368,000
  • Down Payment 3.5% Paid by Grant
  • Grants Up to: 5% Down & Closing Costs
  • Credit as-low-as 640
  • Debt-to-Income: Up to 59%
  • Mortgage Insurance: .85% Monthly
  • Other Restrictions: None

Good Neighbor Next Door Program

The Federal Department of Housing and Urban Development’s, (HUD), Good Neighbor Next Door program aims to set aside homes taken over from foreclosure, abandonment or seizure and offer them at 50% of the existing appraised value to teachers and first responders only.  In addition, eligible buyers are able to utilize the various home purchase assistance grants available to them to assist in the purchase costs.  The draw back to this program is, even though this program has not been officially dismantled, HUD has not made any inventory available for this program in years. If you have interest in real estate, call us, we’ll get the best deal that’s available for you at the time.

*  Homes are limited. Please contact us for details.

Program Benefits:

  • Max Income: No
  • Max Purchase: No
  • Down Payment: Various Limits Available
  • Grants: Home Reduced to 50% of Value
  • Credit as-low-as Detemined by Loan Prg
  • Debt-to-Income: Determined by Loan Prg
  • Mortgage Insurance: Det by Loan Prg
  • Restrictions: Classroom Teacher or Field  1st Responders Only    

Home Ready

Home Ready is the best mortgage program out there if you can put some money down (at least 3%).  The advantage here is reduced mortgage insurance offered at market interest rates (without buy-downs or premium pricing).  The restriction is that you must make less than $62,240 per year in gross income.  One additional advantage of Home Ready is that there is no maximum purchase price limit.  

Program Benefits:

  • Max Income: $62,240
  • Max Purchase: No 
  • 3% Down Payment
  • Grants Up to: 2,500  
  • Credit as-low-as 640
  • Debt-to-Income: Up to 49%
  • Mortgage Insurance: Reduced Rate
  • Other Restrictions: None  

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