How to qualify to buy foreclosed homes in Arizona is easily answered with one phrase: YourWayHomeAZ.
YourWayHomeAZ is a mortgage loan down payment assistance program from the Arizona Department of Housing (ADOH) that offers qualified homebuyers up to 22% down payment assistance if your are purchasing a forclosed home in Arizona with an FHA, VA, USDA, Fannie Mae, or Freddie Mac mortgage. The great benefit of this program is that if you keep your home long enough you will not have to pay back the money that you get for your downpayment.
If you live in Maricopa County Arizona, or if you plan to live there, the YourWayHomeAZ is a great program to help you put extra money into your downpayment while getting a very stable government backed loan through FHA, VA or USDA loan programs. The YourWayHomeAZ program is available in all areas of Arizona.
What Are The YourWayHome Home Buyer Qualifications
You must live in the home you purchase – no investment properties.
You household gross income cannot exceed 120% of the average median income for the county. Household income for qualification purposes includes the gross income of all persons 18 years and older that will live in the home.
Program is available to any home buyer – first time buyers and repeat buyers
You must take an approved Homebuyer Education Class
After you close your loan you must still have two months of your mortgage payment left in reserves in your bank account
You will need to have at least 3% of the sales price of your own money to use as down payment. 1% must be provided by the borrower, but 2% can be gifted funds or from other approved sources.
What Are The YourWayHome Property Requirements
Foreclosed/Bank-Owned properties only. The property must be vacant at the time of listing.
Eligible for any one-unit single-family residence, including condominiums, townhomes and permanently installed mobile homes
Purchase price must be at least 1% less than the appraised market value of the property
Properties must pass a Minimum Property Standards inspection prior to closing
What Are The YourWayHome Financing Terms
First mortgage must be a fixed rate fully amortized loan not to exceed 30 years
The maximum loan amount of the first mortgage cannot exceed 75% of the purchase price
The first mortgage can be either FHA, VA, USDA or conventional financing
The ADOH provides a silent-second loan for 22% of the purchase price that has no interest or required payments
The program loan term is between 5-15 years depending on the loan amount
The program loan is forgiven at the end of the loan term provided the borrower continues to own and occupy the home until such time. (Loan must be repaid if property is sold during the loan term)
First mortgage can be refinanced provided the new loan results in a lower monthly housing payment
Seller’s may contribute up to 3% in closing costs and pre-paid expenses
To find a loan officer in Arizona to purchase a foreclosed home please complete the following form: