The Home In 5 Advantage program is one of those great things that if you can take advantage of it – do! Right here in Maricopa County, there is free money available to help you buy a home. But the money won’t last forever – when the program launched, there was about 32 million available – and as of April, 2013 there is now about 2.5 million left. It is possible that another allocation of money will happen – but don’t count on it! Get pre-qualified now with a leading lender who is participating in the program.
How the Home in 5 Program Works
Five percent of the loan amount is given to a borrower to cover their down payment and a portion of their closing costs. Veterans receive 6 percent and, since they are already eligible for 100 percent financing, the 6 percent covers all of their closing costs and essentially they get into the home for nothing. There is a minimum credit score requirement of 640, and your household income cannot be higher than $88,000. The maximum sales price of the home in Maricopa County of $300,000. NOTE: The Home in 5 program also is now open in Yavapai and Coconino Counties – and if it goes like it has in Maricopa County, expect there to be a mad rush to get approved for the program. You do not have to pay the money back – it is considered a grant and not a loan.
Home in 5 Program Highlights
Here are just some of the highlights in bullet format:
- 5% down payment assistance. Assistance is calculated as 5% of the initial principal balance of mortgage loan.
- 30 year Fixed Rate Home Loan with Competitive Interest Rate (set by IDA). **The interest rate may change periodically to stay competitive with the market**
- This is a grant, so no repayment is required.
- Eligible loan types: FHA, VA, or USDA-Rural
- Minimum 640 credit score
- Maximum of 45% debt to income ratio
- There is no First Time Homebuyer Requirement
- Maximum qualifying income of $88,000
- Important for Military (Qualified Veterans, Active Duty Military, Active Reservists, Active National Guard)
- Down Payment Assistance is increased to 6%
How To Qualify
Not all mortgage lenders are participating in the program – so the first step is to find a lender who can help you get qualified and is participating in the program. There are plenty of great lenders who are participating in the program, we can easily help you find one.
Home In 5 Advantage Program Product Sheet
Home in 5 Featured Lender
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More information on Arizona Downpayment Assistance.