Phoenix’s $15,000 Incentive for Buying Foreclosed Homes

avatarthumbnail.jpgThe 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]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

5 Comments

  • The City of Phoenix Can’t Sell Real Estate Either | Phoenix Real Estate | Phoenix Homes for Sale | All Phoenix Real Estate 9 years ago

    […] who clued me in on some of what was said during Monday’s informational meeting about the City of Phoenix’s $15,000 loan available for those purchasing bank owned homes […]

  • John Amoako 8 years ago

    Hi Jonathan,I just bought a home in 44st and Macdowell for the price of $90000. I didn’t know about your program untll someone told me today at work. I have already paid for the closing cost and the down payment. I have not been to the couseling. My credit score is 720. The house needs some work and it is costing me $25000 to fix them,and I have already spent $18000 and there is more money left for me to finish the renovation. My is pregnant and the baby is due on July. Is there anyway that I can quality for the $15000 amount?Thanks,
    John,

  • Jonathan Dalton 8 years ago

    Hi, John … it’s actually the city of Phoenix’s program, not mine.

    Unfortunately, I don’t see a way you would qualify as there were a number of hoops that needed to be jumped through – a full-day buyer education class, for starters. And the sales price would have had to be no more than 85% of appraised value.

    You can check with the City of Phoenix to see if there’s any way of doing this retroactively but at least from what I’ve seen so far, I don’t see such an option available.

  • Fixing Phoenix’s $15,000 Loan Program for Foreclosed Homes | Phoenix Real Estate | Phoenix Homes for Sale | All Phoenix Real Estate 8 years ago

    […] First off … Nick, James … welcome to AllPhoenixRealEstate.com. If you were one of my readers you would have known about this program on March 17. […]

  • fix and flip real estate 8 years ago

    great article. I will bookmark this

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