Down Payment Assistance Loan Maricopa County Arizona

Down Payment Assistance Loan in Maricopa County, Arizona

Are you looking to buy a home in Maricopa County, Arizona but struggling to come up with the down payment? You're not alone. Many first-time homebuyers face this challenge, and it can be discouraging. However, there is hope! Down payment assistance loans are available in Maricopa County to help make homeownership more accessible.

What is a Down Payment Assistance Loan?

A down payment assistance loan (DPAL) is a type of loan that helps cover the upfront costs associated with buying a home. These loans are typically offered by state or local housing agencies and provide funds for eligible borrowers who meet certain income and credit requirements.

In Maricopa County, DPALs are available through the Home Plus program administered by the Arizona Department of Housing (ADOH). This program offers several options for down payment assistance based on your individual needs and circumstances.

Types of Down Payment Assistance Loans Available

1. Conventional HFA Preferred Plus DPAL: This option provides up to 5% of the purchase price as a second mortgage at 0% interest rate with no monthly payments due until payoff or refinance.

2. FHA Preferred Plus DPAL: This option provides up to 4% of the purchase price as a second mortgage at 0% interest rate with no monthly payments due until payoff or refinance.

3. USDA Preferred Plus DPAL: This option provides up to 4% of the purchase price as a second mortgage at 0% interest rate with no monthly payments due until payoff or refinance.

Who Qualifies for Down Payment Assistance Loans?

To qualify for down payment assistance loans in Maricopa County, you must meet certain eligibility criteria set forth by ADOH:

Your household income cannot exceed certain limits based on family size.
You must have satisfactory credit history.
The property being purchased must be located in Maricopa County and meet certain purchase price limits.
You must complete a homebuyer education course before closing on the loan.

Benefits of Down Payment Assistance Loans

1. Lower upfront costs: DPALs can help reduce the amount of money you need to come up with for your down payment, making homeownership more affordable.

2. Increased buying power: With a DPAL, you may be able to afford a higher-priced home than you would without assistance.

3. No monthly payments: Many DPALs do not require monthly payments, which can help ease financial strain during the early stages of homeownership.

4. Competitive interest rates: The interest rates on DPALs are often lower than those offered by traditional lenders, helping save money over time.

Conclusion

If you're struggling to come up with the down payment for your dream home in Maricopa County, Arizona, don't give up hope! Down payment assistance loans are available through ADOH's Home Plus program and can provide significant financial support when purchasing a new home. Contact us today to learn more about how we can help make your homeownership dreams a reality!