The past couple have days have been filled with phone calls and e-mails asking about the City of Phoenix’s $15,000 incentive for those purchasing bank owned homes within the city limits.
As with any program, though, the devil is in the details. Here’s what I’m seeing:
- The $15,000 is not a gift; it’s a loan that needs to repaid when the homeowner either sells or refinances the property.
- The $15,000 applies only toward down payment and closing costs.
- The loan only can be used on foreclosed properties and an appraisal must have been conducted within 60 days of the new contract date
- The sales price needs to be at least 15 percent below appraised value (My question: 15% the value of an appraisal conducted for the new loan or of a prior appraisal? And what do you do if there was no prior appraisal?)
- The program only applies to foreclosed homes within the City of Phoenix itself. (For those who have asked about properties in El Mirage, Maricopa and Surprise, none are eligible.)
- The property must be cleared of code violations.
- Buyers must be FHA-eligible. (Question: by extension, does this mean the home itself has to be FHA ready?)
- Potential buyers must complete eight hours of counseling from a HUD-certified housing counselor.
- Buyers must secure a three-year home warranty (one year is more common).
Lastly, the property must be used as a primary residence. No investment properties, no second homes or vacation homes.
You can see the City of Phoenix’s full fact sheet here.
Have questions about how this applies to you? Call or e-mail me and I’ll answer what I can and get you to an FHA-approved lender for the rest of the particulars.
[tags]Phoenix real estate, bank owned homes[/tags]