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City of Phoenix $15,000 downpayment grant program

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UPDATE * (as of Dec. 2011)

Hi Becky,

Thank you for taking my call this morning; as discussed, I have outlined some of the program improvements and highlights below.  Also feel free to refer to the website for additional information www.phoenix.gov/nsphome.

  • The Homeownership Assistance Program is in close out mode, there are only 4 slots left.  The purchase price did need to be 1% below appraised value; however, we have relationships with most REO sellers and they are agreeable to the program.  The Home Improvement Program will also operate in this manner however we are confident that it will not be an issue.
  • We have two new programs which have recently rolled out; the Move-In Ready and Home Improvement Program.  Please see the website for additional information on each program.  We also have a listing of upcoming Information Sessions available including one with an Open House Tour on Saturday, April 16th.
  • The housing counseling agencies that we work with have a schedule of home buyer education classes available on our website.  There is at least one class available each week.  The old process used to have buyers attend the class before they knew if they were program eligible.  This process has changed for buyers to attend the class once they have received an eligibility letter and put an offer in on a home.
  • The $15K has become forgivable and declines over a 15 year timeframe; we are currently working up the new docs.  The up to $40K in the Home Improvement Program is also forgivable and declines over a 15 year timeframe.
  • It looks like the income table has gone up a bit since your post in 2009 so I attached a copy of the new table.
  • The home warranty policy has also changed to a lesser requirement.  The Move-In Ready program only requires one year and the Home Improvement two years.  Buyers have the option to select up to three years if they so choose.
  • The buyers contribution needs to be 1/2 of the required down payment, or a minimum of $1,000.I have also attached our buyer’s toolkit or (buyer’s guide) which includes additional program details.  I hope you are pleased with the improvements we have made to the program and will be able to attend one of our upcoming events!

    Feel free to contact me if you have any questions.

    Thank you,


Lisa Marie Everhart
Marketing and Customer Services Manager
Neighborhood Stabilization Program
(602) 495-6757
lisa.everhart@phoenix.gov

ORIGINAL POST: –

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

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Becky Becky Wyatt  
REALTOR®
HomeSmart Real Estate
480-383-9209 phone
888-855-4817 e-fax
www.ArizonaHomeTalk.com
Becky@BeckyWyattOnline.com
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