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Let The Pathway to Purchase DPA Program Help You Buy A home In Buckeye Arizona

If you are finally ready to buy a home, the Pathway to Purchase Down Payment Assistance Program might be what you need.

You will just need to buy your home in Arizona City, Avondale, Buckeye, Casa Grande, Coolidge, Douglas, El Mirage, Fort Mohave, Goodyear, Huachuca City, Laveen, Maricopa, Red Rock, Sierra Vista, Snowflake, Tucson (The Industrial Development Authority of the City of Tucson will administer the Pathway to Purchase DPA Program in Tucson. Homebuyers interested in the City of Tucson and the City of South Tucson need to visit www.tucsonida.com), or Yuma.pathway to purchase

The ADOH (Arizona Department of Housing) “Pathway to Purchase” (P2P) Down Payment Assistance Program provides an attractive 30-Year fixed-rate mortgage with a Down Payment Assistance (DPA) second mortgage equal to 10% of the purchase price, up to a maximum of $20,000. The assistance is an incentive to buy in targeted housing markets that have been hardest-hit by foreclosures. The DPA second mortgage is a five–year forgivable lien against the property.

Funding for the Pathway to Purchase DPA Second Mortgage Program is provided by the U.S. Department of the Treasury through the Troubled Asset Relief Program; Hardest-Hit Fund. The P2P Program has a $48-million-dollar commitment and is available on a first come first serve basis.

The Pathway to Purchase program started in March of 2016 and had $76 million in federal funds. Reginald H. Givens from The Arizona Department of Housing estimates that the program will assist 38,000 – 46,000 people and families with an average loan of $16,300.

The loan money is considered a soft-second mortgage which would be forgiven after five years.

A soft-second mortgage is a form of loan in which its entirety, or a portion of it, can be forgiven or deferred for a period of time by the lender when certain conditions are met.

We are sure there may or may not be lender requirements we are unaware of, and we suggest that you contact the participating lenders for more information. We will include a small list later in the article.

The basics of the program are:
• 30-year Fixed-rate mortgage
• The DPA second mortgage is a five–year forgivable lien against the subject property with a 0% Interest rate and no required monthly payments.
• The down payment assistance (DPA) can be used toward the down payment and/or closing costs. DPA is only available in conjunction with a Pathway to Purchase first mortgage and is funded by AHFPFC/ADOH at the mortgage loan closing.

Your first steps to getting started are that the Homebuyer MUST work through one of The Arizona Department of Housing (ADOH) approved and participating mortgage lenders. The lender will be your point of contact throughout the process. They will be working with you to obtain a mortgage and registration that qualifies for the down payment assistance.

pathway to purchase

There are eligibility requirements, but they aren’t too ridiculous to meet.

The Mortgage is for the purchase of an Owner occupied, Primary Residences only. The Borrower(s) Income not to exceed $92,984. The Purchase Price is not to exceed $371,936 and available on Fannie Mae HFA Preferred mortgages only. Maximum loan-to-value (LTV) ratio is 95.0%.

  • You must have a minimum Credit Score of 640.
  • The home must be an existing Single-Family, Townhomes or Condo, and new construction houses are not allowed, including spec homes.

The maximum debt-to-income ratio is 45% and Fannie Mae HFA Preferred (variation of FNMA HomeReady) underwriting guidelines apply. (An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.)

If you would like the current loan rates, you can check here.

All homebuyers are required to complete a pre-purchase homebuyer education course through an HUDapproved homebuyer education provider. They offer options for online, over-the-phone and in-person attendance. The homebuyer education requirement is accomplished by taking a pre-purchase course through an internet-based program developed by mortgage insurance companies, such MGIC or Genworth Financial or through another HUD-approved homebuyer education provider.

“With the escalating increase in rents, many creditworthy renters are finding it more and more difficult to save for a down payment,” said Reginald Givens, with the Arizona Department of Housing. “With the Pathway to Purchase program, this obstacle has been removed. Pathway to Purchase gives qualified buyers a true pathway to homeownership, with a second mortgage provided as a deferred and potentially forgivable loan that can be used for down payment and closing cost assistance.”

pathway to purchase

The benefit to the 17 targeted cities is that it will help bring people to the towns, bringing in more property taxes and increase spending with local businesses.

Up to $20,000 to help you with your down payment. That is a great way for Arizona to help you buy a home.

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