Down Payment Assistance Loan in Graham County, Arizona
If you're looking to buy a home in Graham County, Arizona but struggling to come up with the down payment, there are options available to help. One such option is the Down Payment Assistance Loan program offered by the Graham County Housing Authority.
What is a Down Payment Assistance Loan?
A Down Payment Assistance Loan (DPAL) is a loan that helps cover the upfront costs of purchasing a home. These loans can be used for both new and existing homes and can be combined with other financing options like FHA or VA loans.
The DPAL program offered by the Graham County Housing Authority provides eligible borrowers with up to $10,000 towards their down payment and closing costs. The loan has no interest rate and does not require monthly payments. Instead, it's paid back when you sell your home or refinance your mortgage.
Who qualifies for a DPAL?
To qualify for a DPAL through the Graham County Housing Authority, you must meet certain eligibility requirements:
You must be a first-time homebuyer or have not owned a home in three years.
Your household income cannot exceed 80% of the area median income (AMI). For example, as of 2021, if you're applying as an individual in Graham County, your annual income cannot exceed $33,350.
You must complete homeownership counseling before closing on your loan.
How do I apply for a DPAL?
To apply for a DPAL through the Graham County Housing Authority:
1. Contact them directly: Call (928) 428-0410 or visit their website at grahamhousing.org/dpal-program/ to learn more about their program and how to apply.
2. Find an approved lender: The housing authority works with several lenders who are familiar with their programs and can help guide you through the application process.
3. Complete homeownership counseling: Before closing on your loan, you'll need to complete homeownership counseling. This can be done online or in-person and will cover topics like budgeting, credit management, and home maintenance.
4. Close on your loan: Once you've been approved for a DPAL and completed homeownership counseling, you're ready to close on your loan and purchase your new home!
Benefits of a DPAL
The Down Payment Assistance Loan program offered by the Graham County Housing Authority has several benefits:
No interest rate: Since the loan has no interest rate, you won't have to worry about paying more than what you borrowed.
No monthly payments: You won't have to make any monthly payments towards the loan. Instead, it's paid back when you sell your home or refinance your mortgage.
Lower upfront costs: The DPAL helps cover some of the upfront costs associated with buying a home, making it easier for first-time buyers to get into the market.
Can be combined with other financing options: The DPAL can be used in conjunction with other financing options like FHA or VA loans.
Conclusion
If you're looking to buy a home in Graham County but struggling with down payment costs, consider applying for a Down Payment Assistance Loan through the Graham County Housing Authority. With up to $10,000 available towards your down payment and closing costs, this program can help make homeownership more accessible for first-time buyers. Contact them today to learn more!
