Home in 5 Program
UPDATE: OCTOBER 2015- The Home in 5 Program has included Fannie Mae HFA Preferred Conventional loan financing for properties purchased in Maricopa county and the city of Phoenix. Homebuyers who qualify may obtain a non-repayable down payment and closing cost assistance grant on a 30-year fixed rate loan. Special incentives are also offered for qualified military, first responders and teachers.
This announcement is an expansion of the Home in Five Advantage that has been in place since 2012. More on this announcement below.
Homeownership is the American Dream and Home in 5 has helped many individuals achieve this dream with $55 million loans issued and $2.2 million in down payment and closing cost assistance. Take advantage of Home in 5 now and join the 300+ homeowners this program has assisted.
How the Home in 5 Program Works
The Home in 5 program offers down assistance and closing cost assistance to qualifying individuals by offering a non-repayable grant. This program covers properties for purchase located in Maricopa county. A potential homebuyer may use this program for new or existing properties whether a single family dwelling townhome, condo, or manufactured home. The potential homebuyer must reside in the property as a primary residence within 60 days of closing. The maximum purchase price of the property cannot exceed $300,000.
Home in 5 Program Highlights
Here are just some of the highlights:
- Program requirements may change periodically, please refer directly to MCIDA for most recent program eligibility.
- 3.5% down payment assistance.
- 30 Year Fixed Rate mortgage
- This is a grant, so no repayment is required.
- Eligible loan types: FHA, VA, or USDA-Rural
- Minimum 640 credit score for FHA, VA or USDA loans and a minimum 680 for conventional loans
- Maximum of 45% debt to income ratio
- There is no First Time Homebuyer Requirement
- Maximum qualifying income of $88,000
- Important for Qualified Military, first responders or teachers
- Down Payment assistance may increase to a total of 5%
What The Media Is Saying
You would think that this program is all over the media, right? Maybe not as much as it could be. One recent article in The Phoenix Business Journal points out that the program isn’t really as marketed as well as it could be. From the article (by Kristena Hansen)
… The program — dubbed the Home in Five Advantage — launched last fall, but has apparently been keeping a low profile. I discovered it only recently due to my own personal quest to buy my first home. After some poking around, I learned it has been gradually stirring excitement among local home buyers and subsequently driving up business for participating mortgage bankers.
… That’s right, qualified home buyers can get the Industrial Development Authorities, or IDAs, of the City of Phoenix and all of Maricopa County to pay 5 percent of your original loan amount to cover your down payment and closings costs.
For a home priced at $300,000, that’s $15,000 in down payment and closing cost assistance that you would not be required to pay back. Yes, you read that right. It does not have to be paid back, ever.
The Home in Five Advantage launched last fall, but has been keeping a low profile. I imagine it’s because home buyers are skeptical and think it’s just a sales pitch of sorts but it is not.
And finally – according to the official MCIDA website – even though the program may have not been heard of by everyone, it has helped thousands of families so far:
The Maricopa IDA is proud to announce that through its valued Participating Lenders, the Home in Five Advantage Mortgage Origination Program has now originated over $839 million of mortgage loans to residents of Maricopa County.
That’s right – over a half billion dollars in loans to our residents. We have helped over 5,125 families fulfill their dream of owning their own home.
October 28, 2015 Announcement in Phoenix Biz Journal:
Phoenix Mayor Greg Stanton unveiled a program yesterday offering mortgage down payment help to local school teachers, paramedics, firefighters and police officers.
The program is an expansion of the Home in Five Advantage program created in 2012 by the Phoenix and Maricopa County industrial development authorities to help low- and middle-income buyers purchase homes.
The program offers down payment and closing-cost assistance to borrowers, military personnel and now teachers and a host of first responders. To qualify, borrowers’ incomes must be below $88,000 per year and homes priced lower than $300,000. The program applies to homes bought in Maricopa County. “We want to go the extra mile for our first responders and our teachers,” Stanton said. The programs offers a home price grant of 4 percent to qualifying mortgage borrowers and adds an additional 1 percent grant for military personnel, teachers and public safety workers. “That’s enough to give people extra boost, to be able to build the American dream, to build home ownership,” Stanton said. Phoenix City Council members Daniel Valenzuela and Laura Pastor and Maricopa County Supervisor Clint Hickman also were at the Tuesday announcement for the Home in Five expansion.
Whether you have heard of the program before and are just here looking for more information or this is the first time that you have heard of the program and are just learning about it – one thing is certain: help isn’t very far away. There are many different lenders participating in the program and getting matched up with a lender who is knowledgeable about it and who can help you understand whether or not you qualify for the program (or any other down payment assistance programs for that matter) is easy and only takes a few minutes.
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. Getting matched up with a lender is free, easy and only takes a few minutes.
Getting The Best Deal
When it comes to shopping for a mortgage – whether you qualify for the Home in 5 program or not – one of the best things you can do to make sure you are getting the right information and getting the best deal is to shop multiple lenders. Lenders will issue a quote in writing and once you have a quote in writing, you can compare quotes and come to your own conclusion as to what the right lender is for you. Getting quotes in writing is free, doesn’t take very much time and you might be surprised at the differences in lenders who you speak with. It is likely that each lender will have their own set of fees and rates – as well as differing knowledge levels about the Home in 5 Program and any other down payment assistance programs that may be available to you. Getting started with a free quote only takes minutes and is absolutely free.