How does this Home in 5 Program in Arizona Work?

Five percent of the loan amount is gifted to a borrower to cover their down payment and a portion of their closing costs. The minimum credit score is 640 to be considered for this program.  Unlike the Pathway to purchase program where only the borrower income is considered, your household income cannot exceed $88,000.00 for the Home in Five Program. 

This is a gift and does not have to be repaid!  Veterans can receive 6% and since their VA loan comes with Zero Down, they can use this to cover their closing costs and maybe have enough to buy down the interest rate.

THIS IS AVAILABLE IN ALL CITIES

Here are some main points about the Home in 5 Program

• You receive 5% for assistance.  Keep in mind that there are more fees to use this program from the lender so you will not actually receive the whole 5%.  Typically, you will get about 3% net which on an FHA mortgage, will have you coming in with only Half a Percent Down.  For example, the down payment on a $200,000 home in this scenario would be $1,000
• This does come with a 30 year Fixed Rate that is set by the program, not the lender.  It is though VERY competitive.
• Again, this is a Grant so you do not have to repay the gift.
• Eligible loan types: FHA, VA, or USDA-Rural
• Minimum 640 credit score to obtain a 2% Gift. Down Payment comes out to 1.5%
• Minimum 660 credit score to obtain a 3% Gift.  Down Payment comes out to .5%.  (Half a Percent)
• Maximum of 45% debt to income ratio. When you don't use assistance, you can go up to 55% Debt to income ratio.  Keep this in mind as you may not be able to buy the house in the price range you would like because of the reduction to 45%.  Many times, this is not an issue.
• There is no First Time Homebuyer Requirement
• You cannot have an income of more than $88,000
• Important for Military (Qualified Veterans, Active Duty Military, Active Reservists, Active National Guard)  This is also extended to teachers, nurses, fireman and police as well.
  
• Down Payment Assistance is increased to 6%

Want to know how to get started?  Click on the phone link above to call us or contact us via our website as well.