A NEW MORTGAGE ASSISTANCE PROGRAM FOR ARIZONA HOMEBUYERS
Governor Hobbs’ Arizona is Home – Mortgage Assistance Program initiative is a collaboration between the Arizona Department of Housing (ADOH) and the Arizona Industrial Development Authority (Arizona IDA). The Arizona IDA will target first-time homebuyers in rural counties. Eligible homebuyers will receive a below market 30-year fixed rate mortgage combined with 4% of down payment assistance. The Program is available in the following Arizona Counties: Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai, and Yuma. Eligible homebuyers must have annual incomes at or below 80% of the Area Median Income (AMI). The Arizona IDA offers the Arizona Is Home Program in all Arizona Counties except for Pima and Maricopa.
ARIZONA IS HOME First Steps
Arizona Is Home does not require a direct application from the homebuyer. Selecting your lender is the first step in the process. Your lender will be your point-of-contact throughout the mortgage process. They will work with you to obtain a program qualifying mortgage and register you for Arizona Is Home assistance.
If you would like to determine if you qualify for Arizona Is Home assistance and the new underlying first mortgage, you will need to meet with an approved, participating lender.
How The Program Works
Eligible borrowers receiving assistance through the Arizona Is Home Program, are receiving the benefit of a lower mortgage interest rate than is customarily available on other mortgage loans. The Arizona Industrial Development Authority (Arizona IDA) has sold tax-exempt mortgage revenue bonds to a private investor who receives a lower interest rate on their investment than is customarily available on other investments. The investor buys the bonds because the interest earned is tax-exempt, which in turn creates the ability for us to offer a lower upfront interest rate for Arizona is Home homebuyers.
Terms & Conditions of the Program
The DPA assistance under the Arizona Is Home program is provided in the form of a second mortgage with the following terms/conditions:
- Five-year, no interest, no payment, deferred soft second mortgage.
- The DPA second mortgage is fully forgiven after the 60th month (5-years).
- The DPA is based on 4% of the total first mortgage balance.
- The homeowner can choose to refinance or sell their Arizona is Home first mortgage at any time, however, if a refinance or sale occurs in the first 60 months, the DPA 2nd lien would need to be paid in full.
- The Arizona IDA does not subordinate or provide exceptions to the DPA repayment terms.
Arizona Is Home Program Matrix
| First Mortgage Type | Down Payment / Closing Cost Assistance | Minimum Credit Score | Debt-to-Income Ratio | Maximum Purchase Price | Property Type |
|---|---|---|---|---|---|
| FHA, VA, USDA | 4% | 640 | 45% | $481,176 | Single Family, Townhouse, Condo |
| FHA, VA, USDA | 4% | 680 | 50% | $481,176 | Single Family, Townhouse, Condo |
| FHA, VA, USDA | 4% | 660 | 45% | $481,176 | Manufactured Home |
| Fannie Mae - HFA Preferred | 4% | 640 | 45% | $481,176 | Single Family, Townhouse, Condo |
| Fannie Mae - HFA Preferred | 4% | 680 | 50% | $481,176 | Single Family, Townhouse, Condo |
| Fannie Mae - HFA Preferred | 4% | 660 | 45% | $481,176 | Manufactured Home |
| Freddie Mac – HFA Advantage | 4% | 640 | 45% | $481,176 | Single Family, Townhouse, Condo |
| Freddie Mac – HFA Advantage | 4% | 680 | 50% | $481,176 | Single Family, Townhouse, Condo |
Maximum Borrower Income by County*
Borrowers receiving assistance through the Arizona Is Home Program, are receiving the benefit of a lower mortgage interest rate than is customarily available on other mortgage loans. The Arizona Industrial Development Authority (Arizona IDA) has sold tax-exempt mortgage revenue bonds to a private investor who receives a lower interest rate on their investment than is customarily available on other investments. The investor buys the bonds because the interest earned is tax-exempt, which in turn creates the ability for us to offer a lower upfront interest rate for Arizona is Home homebuyers.
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2023 Area Median Income – 80% AMI:
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Apache County $50,480
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Cochise County $62,400
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Coconino County $84,080
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Gila County $53,040
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Graham County $56,160
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Greenlee County $62,320
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La Paz County $50,480
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Mohave County $52,560
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Navajo County $51,280
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Pinal County $79,200
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Santa Cruz County $50,480
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Yavapai County $61,360
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Yuma County $56,000
Pre-Purchase Homebuyer Education
One of the borrowers must complete a pre-purchase homebuyer education course prior to the loan closing. It is recommended the borrower completes this course as early in the process as possible as valuable information on the buying and borrowing process will be covered. The homebuyer education requirement may be met by taking a pre-purchase homebuyer education course through an Arizona Is Home/Home Plus Arizona approved online provider OR in person through a HUD certified homebuyer education provider.
CLICK FOR VIDEO INFORMATION & TRAINING
LENDER TRAINING
Arizona Is Home Lenders, please click below for detailed program information and training content.
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