YOUR WAY HOME AZ PROGRAM for Buyers of Foreclosed Homes
Your Way Home AZ is a statewide program to assist home buyers purchasing foreclosed homes in select areas to help rehabilitate housing developments, and to stabilize neighborhoods. This program was established to encourage people to buy foreclosed homes. The state of Arizona, nine counties, and several communities have received more than $121 million dollars to help stabilize some of the hardest hit communities.
So what does this program mean to you? If one were to qualifiy, than a good example would be on a $150,000 house the buyer would receive a silent second mortgage of $33,000 with no monthly payments or interest. This means the subsidy is 22% of the purchase price. The borrower will have forgiveness of the repayment of the loan as long as they remain in property for the period of 5 to 15 years depending on the subsidy amount. The borrower needs to remain in the home for 5 years with a subsidy of up to $15,000, 10 years for an amount of $15,001 to $40,000 and 15 years for over $40,000. If a buyer qualifies for this program they can put as little as 3% down.
So what's the catch? (From the Arizona Department of Housing)
- The purchase price MUST BE discounted at least 1% from the current appraised value.
- Borrower meets income requirements (not more than 120% of median adjusted for household size and County)
- Borrower will complete home buyer education program prior to closing (A list will be provided by your lender once you begin the process)
- Borrower committing at least 1% of purchase price from own funds
- Forgive repayment of loan if borrower remains in property for affordability period (5-15 years)
You can also go to yourwayhomeaz.com for a detailed step by step process form that outlines the program.
In addition, to find bank owned homes for sale that may qualify for this program please call me at 602-418-4412.