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.  Home Buyer Tax Credit 

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. However, the new Worker, Homeownership and Business Assistance Act of 2009 has extended the deadline. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010. [Added Nov. 12, 2009]

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date