The Arizona Housing Financing Authority is back at it again implementing new first-time home buyer programs to assist with the finance arm of a first home purchase.
Based on the right situation, the Arizona Mortgage Revenue Bond, can be a great niche product to help with that certain
homeowners who is needing some financial help with purchasing a home. Even though their bond rate (4.99%) is not as
competitive as market rate, some of the benefits do outweigh the drawbacks. Here are some of the criteria.
AZ Mortgage Revenue Bond Highlights
Down Payment assistance available up to 5% of the purchase price. This can be used for down payment, and or closing costs
or a combination of both.
This is probably the biggest advantage to this program. A secondary advantage is if you buy a home in a specific target area
the income is less restrictive.
Here are some of the drawbacks. This program cannot be used in Pima or Maricopa County. So it is primarily a great tool
to lend in rural housing communities. The down payment assistance is not completely forgiven in the first 5 years. It
drops 20% each year. Rate is not as attractive.
Here are the basic requirements: Product is used in conjunction with an FHA, VA and RD insured 30 year fixed rate products.
*Must be a first time homebuyer, plan to occupy as primary residence and not had prior ownership in the last three years
(certain census tracts located in various counties do not require applicants to be first time homebuyers while offering
higher income and sale price limits.)
* Borrower must contribute a minimum of $1,000.00 of personal funds
* Borrower cannot get any cash back or debt consolidation paid
* Borrower required to complete a home buyer education class
* Must meet program’s purchase price and income limits
* House payment/total payment to income ratios cannot exceed 31/43%
* Credit score for all borrowers must be at a 620 or above
* Independent professional inspection to be done on the property and obtain a home warranty
*Again this product will be a niche for that certain client. Also understand that only 22 lenders in the entire state of
Arizona is set up to offer this product. I like to share this because so many think there are not options anymore. I
say find a mortgage lender who understands real options and will work with them.