Down Payment Assistance Loan Mojave County Arizona

Down Payment Assistance Loan in Mojave County, Arizona

Are you looking to buy a home in Mojave County, Arizona but struggling to come up with the down payment? If so, there are options available to help make your dream of homeownership a reality. One such option is the Down Payment Assistance Loan program offered by the Mojave County Community Services Department.

What is the Down Payment Assistance Loan Program?

The Down Payment Assistance Loan program provides eligible borrowers with funds to assist with their down payment and closing costs when purchasing a home. The loan is provided as a second mortgage and must be used in conjunction with an approved first mortgage from an authorized lender.

Who Qualifies for the Program?

To qualify for the Down Payment Assistance Loan program, applicants must meet certain eligibility requirements including:

Must be a first-time homebuyer or have not owned a home within the past three years
Must meet income limits based on household size and location of property
Must contribute at least $1,000 towards down payment and/or closing costs
Must complete an approved Homebuyer Education course

How Much Can You Borrow?

Eligible borrowers can receive up to 10% of the purchase price of their new home or $20,000 (whichever is less) through this program. The loan has no monthly payments and accrues interest at 0% annually. Repayment of the loan is due upon sale or transfer of ownership of the property.

Benefits of Using Down Payment Assistance Loans

Using a down payment assistance loan can provide several benefits for potential homeowners including:

Lower upfront costs: By providing funds for your down payment and closing costs, you may be able to afford more expensive homes than if you had paid these expenses out-of-pocket.
Reduced debt-to-income ratio: A lower debt-to-income ratio can improve your chances of being approved for financing.
Improved credit score: Making timely payments on your second mortgage can help improve your credit score over time.
No monthly payments: The Down Payment Assistance Loan program has no monthly payments, which can provide financial relief for homeowners.

How to Apply

To apply for the Down Payment Assistance Loan program in Mojave County, Arizona, you must first find an authorized lender and complete a loan application. Once approved for financing, you may then apply for the down payment assistance loan through the Mojave County Community Services Department.

Final Thoughts

The Down Payment Assistance Loan program is a great option for potential homeowners who are struggling to come up with their down payment and closing costs. By providing funds to assist with these expenses, this program can make it easier to achieve your dream of owning a home in Mojave County, Arizona. Contact an authorized lender or the Mojave County Community Services Department today to learn more about this valuable resource.