I'm sure you've heard of the Pathway to Purchase down payment assistance program for Arizona homebuyers. No? Well, if you haven't, then I'm here to help. This is a program in Arizona that can help certain people buy a new home. Those looking to utilize the program itself are not allowed to have an income that is over $92,983. The price of the home being purchased can't be more than $371,932.
What Do You get With the Pathway to Purchase Program?
With that out of the way, let's talk about what the program actually provides. This is a fixed rate mortgage that spans thirty years along with a down payment assistance second mortgage for ten percent of the total purchase price OR 20k. Whichever amount is less is the one you end up getting. The down payment assistance second mortgage is actually a 5 year lien (forgivable) against the property itself. This comes in at a 0% interest rate with zero monthly payments required. This can be used for a principal reduction, your closing costs, or your down payment on the place. If you're having a little bit of trouble with this, or even if you just have a question or 2 or would would prefer to speak to someone specific, then I'd suggest getting in touch with someone like the Certo Team, who actually specializes in the Pathway to Purchase program in AZ. Give them a buzz at 602-429-6789; they're extremely helpful.
What are the Pathway to Purchase Program Requirements?
Well, I'm glad you asked! As with all down payment programs, there are certain requirements involved. In order to qualify for this program, the potential home buyer must live in the property itself (as their primary residence) for a minimum of 5 years. After that 5 year block of time the second mortgage is forgiven. You can't own any other property that is residential when purchasing. Your FICO score has to be at least 640. You have to apply through a lender that is participating in this program, the mortgage has to have a loan to value ratio under ninety-five percent, it has to be a Fannie Mae HFA preferred mortgage, and your debt to income ration has to be less than forty-five percent.
There are a few more requirements. You need to complete a home buyer education workshop from an approved agency. You can't have received a mortgage from the Industrial Development Authorities of Pima county or the city of Tucson in the last 3 years.
Now, there are also some property requirements. There is no new construction of homes allowed with this program. That means the place you're purchasing must already be built. Also, it has to be within Tucson, Arizona.
Where do the Funds for the Pathway to Purchase Program Come From?
The funding for this program is given by the United States Department of the Treasury. Arizona itself actually has a forty-eight million commitment specifically for Tucson itself. These funds are available for those who qualify while funds are available.