Home Ownership
Could Be Within Your Reach 
Single Family Mortgage
Revenue Bond Program
2006
Dream Homes With Affordable Payments The Industrial Development Authorities of the City of Phoenix and Maricopa County have joined together to offer up to $37.5 million to help first-time homebuyers obtain FHA, VA or other eligible loan or conventional financing to purchase a home anywhere in Maricopa County. Individuals or families who qualify would be able to obtain a 30-year fixed rate loan at a 5.95% interest rate, with 5% down payment/closing cost assistance. This assistance is a grant and does not require repayment. Financing for these fully assumable loans is available on new or existing homes, condominiums, townhouses or manufactured homes on a first-come, first-served basis.
*Veterans' Exception
On December 20, 2006, President Bush signed HR 6111, the Tax Relief and Health Care Act of 2006, which provides the Veteran's exception to the first-time homebuyer requirement.
The Industrial Development Authorities of the City of Phoenix and Maricopa County have gone a step further to honor this nation's veterans. Not only is the first-time homebuyer requirement waived, but through this program a "Qualified Veteran" will receive a 30-year fixed mortgage loan interest rate of 5.85%, along with a 6% down payment/closing cost assistance grant.
A "Qualified Veteran" is a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable (as provided in 38 U.S.C. Section 101) who has not previously obtained a loan financed by single family mortgage revenue bonds utilizing the veterans exception to the 3-year requirement set forth in Section 416 of the Tax Relief and Health Care Act of 2006.
How to Qualify Your annual income must fall within the levels specified below for the area in which you wish to buy a home. And you must not have owned a home for at least the last three years unless the home you're buying is located in one of the designated "Targeted Areas". Check with your participating lender for details. Potential homebuyers must meet credit requirements. Income Limits for Eligible Borrowers | | Non-Targeted
Areas | Targeted Areas | | Family of: | | | Two or fewer | $65,158 | $72,684 | Three or more | $72,684 | $72,684 |
Homes must be located within Maricopa County, Arizona. The following home purchase price limitations apply for eligible residences: Purchase Price Limits | | Non-Targeted
Areas | Targeted Areas |
New or Existing Housing |
$311,625 |
$380,875 |
Down Payment Assistance All homebuyers qualifying for down payment assistance will receive 5% of the original loan amount to be used for down payment and closing cost assistance. | EXAMPLES: | | | | Loan Amount | Down Payment
Assistance Amount | | $90,000 | $4,500 | | $135,000 | $6,750 | | $185,000 | $9,250 | | $220,000 | $11,000 | | $250,000 | $12,500 | | $300,000 | $15,000 |
Targeted Areas Targeted areas are neighborhoods that have historically been under served in mortgage loan origination and typically contain a high percentage of lower income households. Please see map. The initial Targeted Area consists of the "census tracts" as designated on the Bureau of Census; map for the 2000 census as set forth below: 0614.00 | 0929.00 | 1033.06 | 1072.01 | 1086.01 | 1086.02 | 1090.00 | 1102.00 | 1107.01 | 1112.02 | 1112.03 | 1116.02 | 1125.07 | 1126.02 | 1128.00 | 1132.01 | 1132.02 | 1132.03 | 1133.00 | 1135.00 | 1136.01 | 1137.00 | 1138.00 | 1139.00 | 1142.00 | 1143.02 | 1144.01 | 1144.02 | 1145.00 | 1147.01 | 1147.02 | 1147.03 | 1148.00 | 1149.00 | 1152.00 | 1153.00 | 1158.01 | 1159.00 | 1161.00 | 1166.02 | 9410.00
| 9411.00 |
Check an Address to Verify the Census Track Number
Click on this link http://www.ffiec.gov/Geocode/default.aspx to input an address and found out the census track number.
About Recapture Tax
When you receive a first-time homebuyer loan, you are receiving the benefit of a lower mortgage interest rate and/or down payment/closing cost assistance that is not customarily available on other mortgage loans. The tax-exempt mortgage revenue bond program used to fund your mortgage loan is governed by federal law. The law mandates a "recaputure" of some of the benefit of the program if buyers meet ALL three of the following criteria -- the property ceases to be the principal residence in the first full nine years of ownership; there is a profit on the sale of the home AND the household income increases significantly (generally over the program limits in the first year and an additional 5% over the previous year every year thereafter.)
If "Recapture Tax" is owed, it is computed and paid to the IRS for the tax year in which the home is sold. For the average buyer in these programs, it is very unlikely that they will be required to pay because their income is lower than that allowed. But if Recapture Tax must be repaid, it will never exceed the lesser of 6.25% of the original loan amount or one-half of the gain on the sale of the home.
To find out more about Recapture Tax, please see:
http://www.irs.gov/instructions/i8828/index.html
and/or http://www.ehousing.cc/Phoenix%2006/06%20RecaptureBrochure.pdf
How Do You Become a Participating Lender in the Program?
Lenders can join our program at any time at no cost; however, the lender must be able to underwrite, close, and fund loans within their own name to participate directly in the program. If you would like to join the program, please contact Stacy Houston at (800) 653-3426 to receive the program documentation.
How to Apply Simply obtain a sales contract on the property you wish to buy from the current owner, realtor or builder and present it to any of the participating lenders listed below. Participating Lenders Please Click Here to Download a PDF File of Top Participating Lenders Participating lenders will provide specific APR information as required by law.
How Can I Get More Questions Answered? Additional information can be obtained by contacting one of the participating lenders listed above or by calling the Maricopa County IDA Hotline at (602) 506-7294. |
This program is designed to promote homeownership for First Time Home Buyers, it is a great program that can help you or someone you know achieve the american dream. Please call for more infomation on how you can utilize this program with a starting rate of 5.95%, and a grant of 5% to be used towards your down payment and closing cost! Call today! 
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