There are some amazing new programs available in Arizona, for those looking to buy a foreclosed home. There are thousands of Arizona homes in foreclosure right now, and the Arizona Department of Housing (ADOH) is doing what they can to help with the crisis.
The ADOH has introduced a program entitled "Your Way Home" and it has the intention of helping people purchase Arizona foreclosures with zero down. The State of Arizona is contributing $20,000,000 towards the project.
The Your Way Home program will provide qualified borrowers with up to 22% as a down payment, in the form of a "soft second." A soft second mortgage is defined as A second mortgage with payments that are forgiven, deferred, or subsidized in some fashion, generally until resale of the mortgaged property.
In other words, you don't have to pay off the second mortgage as long as you follow the guidelines. It's free money for those that want to purchase a foreclosed home and make it their primary residence.
There are income limits, price limits, and location restrictions. Do you qualify?
Here is what you need to qualify for a zero-down Arizona foreclosure loan:
1. The house must be a foreclosure or abandoned home.
2. You must work with a lender that has been approved for the program. Arizona Wholesale Mortgage is an approved lender. (Feel free to call us at 480-551-8188, ext. 82)
3. This program is intented to help people who might otherwise be unable to buy a home due to down payment issues. So, we're very sorry, but millionaires and landlords need not apply.
4. Borrowers must have household incomes not greater than 120% of the median household income for the county in which the property is being purchased.
In Maricopa County for example, the median income for a two-person household is $63,250. So if you live in a two person household and you earn more than 125% of $63,250-- which is $75,900-- you would not qualify for this program.
However, before you disqualify yourself, please contact us so that we can be sure to calculate your income correctly. (877-551-8188 ext 82)
5. Borrowers must attend a Homebuyers Counseling session.
6. Borrowers need to have at least two months of reserves after closing. This means that you need the total amount of two mortgage payments, including principal, interest, taxes and insurance. (PITI)
7. Those that wish to buy an Arizona foreclosure need to qualify for a mortgage loan. This isn't a "bad credit" program. It's geared towards people who would otherwise qualify for a mortgage, but simply do not have a down payment.
There are a few more requirements, but the above seven rules are the most important. We, as your mortgage lender, will deal with the other State of Arizona requirements.
Borrowers can use any Realtor they choose and any title company is fine. If you need a recommendation for a Realtor, please call us at 877-551-8188 or email email@example.com
Apply today to buy an Arizona Foreclosure!