Government and Loan Programs for Buyers and Sellers Suggested Reading

1.  NSP Homeownership Assistance provides up to $15,000 in down payment and closing costs to buyers who purchase a foreclosed home within city limits.  The property must be your primary residence.  It does not cover apartments that were converted to condominiums.  The NSP Homeowner assistance plan requires the full amount to be paid back when the home is refinanced or sold.  Eligibility is based on family size vs income and FHA credit worthiness.  The buyer must invest $1,000 of their own funds.  Finally, the purchase price must appraise at least 15% below appraised value. 

2.  HOMEStart provides eligible first-time homebuyers up to $40,000 toward the purchase of a home constructed or rehabilitated by city approved not-for-profit profit developers.

3.  American Dream Downpayment Initiaive provides a $10,000 deferred, no-interest loan toward down payment and closing cost assistance.

4.  Guaranteed Rural Housing Loan

• Allows for 100% financing with no mortgage insurance – at market rates
• Closing costs can be paid by seller or sometimes rolled into loan
• Must meet USDA income guidelines: below $75,750 for 1-4 person household; $100,000 5-8 household (call for more details)
• Must buy in ‘eligible’ area as designated by USDA. Check eligibility here:http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
• Eligible areas include (call for details):
• Most of Anthem
• Southern Gilbert/Chandler – generally east of Gilbert Rd and south of Queen Creek Rd.
• Rio Verde
• Maricopa
• West side – generally south of Waddell Rd (Thunderbird) and west of Reems Rd.
• Can not own any other real estate
• Generally, subject property can not have a pool

5.  FHA – Non-occupant co-borrowers

• Allow for primary buyer to have a family member co-sign on loan
• Co-signer does NOT need to live in property
• Occupant borrower does not need to have a job, but must have three credit scores (generally above 620)
• Allows parents to co-sign for children (‘Kiddie Condo’)
• Allows occupant borrower to take advantage of first-time home buyer credit (call CPA for more details)
• Co-signer can provide down payment

6.  HAFA (Home Affordability Foreclosure Alternatives)

• If your home is unaffordable or will be in the near future, click here to find out if you are eligible for assistance from HAFA.