Down Payment Assistance Programs

Current Down Payment Assistance programs available as of August 2015

 

DPA or Down Payments Assistance Program are designed to help buyers with down payment and or closing costs to purchase homes.  Programs do and can change so it is best to contact us right away to see if you qualify for any of these programs.

WISH Funds (available NOW)

WISH Funds are a great program for home buyers in Tucson and Pima County to purchase a home and to lower their mortgage payment with a larger down payment.

  • Eligible homebuyers can obtain up to $9,000 for down payment and closing cost assistance
    associated with the first mortgage.
  • Minimum Down Payment by the buyer is $2000 (can from gift)
  • WISH Funds match the buyers down payment on a 3:1 basis up to $3000 . Examples buyers own funds $2000, WISH Funds $6000.   Buyers own funds $3000, WISH Funds $9000.
  • No payment is required for the WISH Funds and the loan will be forgiven 100% after the 5th year provided the homebuyer has resided in the property for the full five (5) year period.
  • Borrowers’ combined annual income per household must be at or below 78% of area median income adjusted by family size:  1 Person $30,966, 2 Persons $35,412, 3 Persons $39,858, 4 Persons $44,226, 5 Persons, $47,814, 6 Persons $51,324
  • The homebuyer’s liquid assets may not be more than $10,00 after contribution to the home purchase.
  • The homebuyer must have one month’s PITI in reserves (this is in addition to client contribution)
  • Borrowers must successfully complete home buyer education class prior to purchase contract date
  • Contact Eric Painter at 520-419-9457 or apply at www.ericpainter.com/applynow to be pre qualifined for the WISH Funds today.

IDA City of Tucson/ Pima County 3%,4% or %5 down payment assistance

  • For Pima County and Tucson Arizona
  • 4% down payment assistance of the purchase price of a primary residence
  • No first time homebuyer requirements
  • Single Family homes only.  No Manufactured
  • Minimum 640 credit score Max debt to income ratio 45%
  • Minimum $40,000 loan amount
  • FHA,VA and Conventional loans only
  • $82,600 maximum household income
  • Homebuyer educations required (can be taken on line)
  • Permanent US residents only
  • No asset test required
  • No Cosigners
  • All borrowers must have at least one valid credit score and meet FHA, VA and Conventional lending guidelines.
  • Rates set by the IDA and are not locked in until after the loan has been underwritten

 

Pima County Bond program

Available anywhere in Pima County and the City of Tucson

  • Down payment of 3.5% of the purchase price up to $3700 in assistance for a primary residence.
  • Must take Homebuyers Educations Class prior to signing the purchase contract.  Not available on line.
  • Income limits

Low-Income = 2015 Maximum Household Income Limits (80% of Median Income)

1 Person    $33,050      3 Persons   $42,500     5 Persons $51,000       7 Persons $8,550

2 Persons   $37,800     4 Persons   $47,200     6 Persons $54,800      8 Persons $62,350

  • Maximum purchase price $239,850
  • Homebuyer required at least $1,000 (gifts ok)
  • Homebuyer liquid assets not to exceed $10,000
  • Home buyer must have at least 1 month’s mortgage payment in reserves at closing
  • Homebuyer can not owe the City of Tucson any amounts for Section 8 or Public Housing
  • Housing minimum and maximums applies and maximum debt to income ratio is 45%
  • DPA is in the form of a 2nd lien due upon sale of the house.  If sole with in the 1st 5 years then 2% interest will be added to the 2nd.
  • Home to be purchase must be owner occupied or vacant.
  • For FHA loans
  • No Minimum Credit score.  Must meet FHA guidelines
  • Lender sets rates and fees are limited by the DPA

 

 

Maricopa County and City of Phoenix Home in 5

  • For homebuyers in Phoenix Arizona and anywhere in Maricopa County Arizona
  • 5% DPA for the purchase of a primary residence
  • Up to 6% for qualified active duty military and Veterans
  • Minimum 640 credit score
  • FHA VA and USDA loans only
  • Single family residence only No manufactured homes
  • $88,340 annual household income
  • Maximum 45% debt to income ratio
  • Homebuyer education required prior to signing the purchase contract

 

 

The MCC (Mortgage Credit Certificate)

is a program for homeowners provided by the City of Tucson’s Industrial Development Authority. The MCC is a tax credit that helps lower homeowner’s federal tax liability. The MCC gives homeowners a 20% credit off the interest they paid on their mortgage each year for as long as they own and live in the home. The MCC is for properties that are new or previously occupied single-family homes in the Program area. Homeowners must apply for the MCC before closing on the purchase of their home.

This program works with fixed rate or adjustable rate FHA,VA and Conventional loans. The MCC is not available with non-taxable mortgage revenue bond loans and veteran bond loans. Only original first mortgage financing is eligible. MCC’s cannot be used with 100% seller financing.

 

Applicant Fee’s

There is a .75% fee of the final loan amount to participate in the MCC. This can be added to the closing cost the seller pays. There is also a $100 Annual Administration fee. The $100.00 annual fee is paid each year by the borrower. The fee is paid in arrears, so the fee for 2009 is due in 2010 (we send an invoice in January). The fee is prorated the first year depending on when their closing date is.

Other Benefits

Once a borrower is in the MCC program they can refinance as many times as they wish and continue in the program provided they notify us each time they refinance so we can re-issue the certificate. They will need to complete a refinance application but there is NO ADDITIONAL FEE to do this. Also, since they are already in the program, they do not have to re-qualify (so no problem if their income exceeds program limits).

If a home owner uses the MCC they can save thousands of dollars. In this example the homeowner’s loan was $100,000. At 6% interest they will pay about $6,000 in interest. The MCC gives them credit for 20% of the interest paid. The tax credit would be $1200 the very first year. For this same mortgage over 30 years, the homeowner would receive $43,167 in tax credits from the MCC!!!!

Map of Non-Targeted Areas and Targeted Areas for Tucson City Limits

Contact me today to get more information and to apply.
*Household size is determined by how many individuals are living in the home (no age limits). If a borrower is expecting at time of application, the baby is counted toward the household size.

 

*The Product/Program information contained here is educational only and does not represent actual rates or financing terms. **Other conditions and restrictions may apply. Available loan programs are subject to change without notice. Contact your loan officer for more information.