Looking for help purchasing a bank owned home in Arizona? The Arizona Department of Housing may be able to assist.
ADOH has received $38 million in funding to help buyers purchasing foreclosed homes across the state. Some of the hurdles are similar to Phoenix’s $15,000 loan program for purchasing REO properties but the challenges that make Phoenix’s plan nearly unworkable mercifully are absent from ADOH’s plan.
Here is the basic rundown:
- The home must be purchases as a primary residence
- Buyers’ household may have a gross income of no more than 120 percent of the average median income for the county. (There’s a huge table that goes with this.)
- If you already own a home, you need to have been leasing that home for 12 months prior to applying for the program.
- You need to used an ADOH participating lender (so your cousin Jim might not be able to help you.)
- Buyers must attend an eight-hour Homebuyer Education Class
- You need two months PITI (prinicpal, interest, taxes and insurance) reserves
- Maximum debt-to-income ratio is 31/43 (lenders can help translate.)
If you meet those requirements and are buying an eligible property – a vacant, foreclosed property selling for no more than $346,250 – you’re eligible for a loan for 22 percent of the purchase price. All loans are for zero percent interest with no monthly payment and, again unlike Phoenix’s plan where the loan must be repaid, the loan balance is forgiven at the competion of the term.
If the loan is for $15,000 or less it’s forgiven after five years, after 10 years for loans of $15,001 to $40,000 and after 15 years for loans of more than $40,000.
Want more information? Call or e-mail me and I’ll get you in touch with a participating lender who can give you additional details.
Keep in mind … there’s only a $38 million pool so this program’s for a limited time only.
[tags]Phoenix real estate[/tags]