In another sign of economic recovery, Phoenix IDA & Maricopa County IDA have teamed up with Morgan Keegan to bring the Home in 5 down payment assistance program back to us here in the Metro Phoenix market.
In 2006 and 2007, the Home in 5 program helped over 2200 families with a 5% grant to be used towards the expenses of down payment and closing costs when purchasing a home. This was a highly successful program that was ultimately responsible for over $400 million in down payment assisted home loans. That’s big.
After the market crash in 2007, interest rates were extremely volatile and mortgage bonds were becoming far less appetizing for investors. The original Home in 5 down payment assistance program was a bond driven program, so it was ultimately gone with the wind… with so many other home buyer options.
Now called the Home in 5 Advantage, here are the highlights:
- 5% down payment assistance. Assistance is calculated as 5% of the initial principal balance of mortgage loan.
- 30 year Fixed Rate Home Loan. Interest Rate (set by IDA) currently 3.875% **The interest rate may change periodically to stay competitive with the market**
- This is a grant, so no repayment is required.
- Eligible loan types: FHA, VA, or USDA-Rural
- Minimum 640 credit score
- Maximum of 45% debt to income ratio
- There is no First Time Homebuyer Requirement
- Maximum qualifying income of $90,000
- No maximum home purchase price (subject to income and debt ratios)
- Important for Military (Qualified Veterans, Active Duty Military, Active Reservists, Active National Guard)
- Down Payment Assistance is increased to 6%
- No income restrictions
About the author:
Shane Hollenback is a mortgage lender at Nova Home Loans in the east valley. Shane can be reached at 480-270-4820