Down payment assistance Phoenix Arizona

Real Estate Agent with West USA Realty, Mesa AZ

Down payment assistance Phoenix Arizona

house and home     Have you heard about the new program from the Arizona Department of Housing (ADOH), called YourWayHomeAZ which offers to provide down payment assistance 22% of the purchase price of a qualified home in the Phoenix metro area? The program is being funded by using some of the TARP money provided to the State.

     The down payment assistance is in the form of a second mortgage, which-- get this--  comes with zero interest and no payments. As you might expect, there are some strings.

First the home must be a lender-owned, repossessed home to qualify for this down payment assistance program. There are many such homes available in Phoenix Metro and other Arizona cities. One aim of the YourWayHomeAZ program is to get lender-owned homes off the market and into the hands of individuals and families who want them for their primary residence. So investors and other non-permanent residents need not apply. You must be a qualified buyer-- the program is not for reserved for first-time buyers or other special cases. You need good credit and the ability to come with at least a 3% down payment plus closing costs to qualify for this down payment assistance. Also, you must attend a one-day buyer's educational course and receive a certificate of completion for it.

 Yard Sign     The home must also pass a rigorous inspection, similar to the inspection given to a home being financed through an FHA guarantee. Under the YourWayHomeAZ guidelines, the selling bank must agree to make repairs needed to qualify the home. Extensive "fixers" are not likely to be approved.

And there are residency requirements. The down payment assistance will be written off by ADOH on a schedule determined by the dollar amount of the assistance you receive.  For up to $15000, you must live in the home for 5 years. For $15,001 to $40,000, 10 years. For more that $40,000, 15 years.

    How do you get into this program? First, choose a Realtor and a Lender to work with. Let the Lender fully qualify you for the down payment assistance program. While that is happening, your Realtor can be helping you select qualifiedd homes to consider, and showing them to you. (Hint: I am a Realtor(smile).

For many buyers, this is a great down payment assistance program. It provides you an opportunity to get into a home of their choice, with a 25% downpayment for instant equity, with a payment-free and interest-free second mortgage that will be wiped out when the residency requirements are completed. Whats not to like?

If you want more information on this remarkable program, call Denver Johnson (602-509-6684) or Joyce Paule (480+650-6718), both with West USA Realty(602-509-6684) or email me at to view a full list of homes, click on search for homes for sale in Phoenix metro or the West USA Realty featured listings by community

Comments (4)

Kyle Jan
Scottsdale, AZ
Phoenix AZ Homes for Sale

Denver- it is also important that the buyer knows that they have to work with a lender that is on the approved list with the ADOH.  Not every lender has access to the soft second mortgage that the state will be placing on the home.  The program is a great opportunity for many potential home buyers.

Oct 15, 2009 07:04 AM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

In addition to the Yourway az tehre is also city specific programs that have grants for home buyers that buy foreclosures,

Nov 17, 2009 12:50 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Denver, wow that is great!  This is the first time I've heard of TARP money benefiting consumers.  Sounds like a novel concept, eh!

Feb 24, 2010 06:58 PM
John Puplava
ABC Home Inspections,L.L.C. - Prescott, AZ
ABC Home Inspections,L.L.C.

Hi Denver,

How are you doing today. i just want to introduce myself to you my name is John with ABC HOME ISPECTIONS. If I can assist you in any home inspections. Please call me.

Thank you,

John with ABC Home Inspections


Sep 28, 2010 05:07 PM