Arizona Home Talk

Here is the scoop about a program I get asked about a lot.  Many mortgage lenders and real estate agents will tell you this program isn’t a viable option.  Two main reasons seem to prevent it from happening - 1) banks won’t accept offers 1% below appraised value 2) the 8 hour class the buyer must take is offered so rarely (like once a quarter) or is already full.  Read on for more details about the $15,000 downpayment “loan” program we lovingly know as…

Neighborhood Stabilization Program

With the passing of the Housing of Economic Recovery Act (HERA) $3.95 billion of grant funds are to be distributed to cities across the country.  HERA

directed HUD to target funding areas with the greatest needs based on the extent of foreclosures, sub prime mortgages and mortgage delinquencies and defaults.

The City of Phoenix was awarded approximately $39.5 million in NSP funds to help families purchase foreclosed homes at a discount which in turn helps stabilize neighborhoods and increase property value for everyone.

With this program, $15,000 is awarded for downpayment and closing cost assistance for buyers of foreclosures homes anywhere in the City of Phoenix.  The full amount of the loan is paid back when the homebuyer sells the home.

The program targets foreclosed single family homes and condo’s (condo conversions not eligible)

Family Size and 120% of the Area Medium Income will be a factor in your eligibility for the program.  Use this calculator.

A family of 1 cannot exceed $55,350, a family of 2 = $63,250 income, a family of 3 = $71,150, a family of 4 = $79,100, a family of 5 = $85,400 ETC.

To be eligible for NSP Home ownership Assistance Funds, properties must meet the following requirements:

• Located in City of Phoenix
• Foreclosed and have changed title
• Appraised within 60 days of the purchase contract
• Purchase contract must contain four contingencies:
  • Sales price at least 1 percent below appraised value
  • Property is clear of the city’s most common blight/code violations neighborhood code violations (See http://www.phoenix.gov/CLEANPHX/topseng.pdf)
  • Property must pass a Housing Quality Standards (HQS) or FHA inspection, which includes the top 8 city of Phoenix property standards.
  • Purchase contract must contain a signed “Lead Disclosure Form” from seller for properties built prior to 1978.

Program Specifics:

• $15,000 LOAN for down payment
• Currently City of Phoenix only
• down payment and cosing costs assistance only
• 8 hour of homebuyer education required
• Must have a 3 year home warranty contract
• $1000 must come from borrower’s own funds (not a gift)
• Full amount of loan paid back upon sale
• Borrower allowed to earn $120% of Area Medium Income

For more information of properties that may qualify - don’t hesitate to get in touch with me via email: Becky (at) BeckyWyattOnline (dot) com or call me 480-383-9209 - Becky Wyatt, REALTOR w/HomeSmart

Information provided by Ed and Barbara Heiser - Morgage Banker/Brokers with AMERIFIRST FINANCIAL.  Contact them at 480-682-6628