Down Payment Assistance Loan Pima County Arizona

Down Payment Assistance Loan in Pima County, Arizona

Are you looking to buy a home in Pima County, Arizona but struggling to come up with the down payment? Don't worry; there are options available for you. One of these options is Down Payment Assistance (DPA) loans.

What is a Down Payment Assistance Loan?

A DPA loan is a type of loan that helps first-time homebuyers or low-income families purchase homes by providing them with funds for their down payment and closing costs. These loans can be used in conjunction with other mortgage programs such as FHA, VA, USDA, or conventional loans.

In Pima County, the Community Investment Corporation (CIC) offers DPA loans to eligible borrowers. The CIC's program provides up to $20,000 in assistance depending on the borrower's income and the location of the property they intend to purchase.

Who Qualifies for a Down Payment Assistance Loan?

To qualify for a DPA loan from CIC in Pima County:

1. You must be a first-time homebuyer or have not owned any real estate property within three years.
2. Your household income must fall below 80% of the area median income (AMI). For example, if you're purchasing a single-family home in Tucson city limits and your household size is four people, your maximum annual income cannot exceed $56,800.
3. You must complete an approved Homebuyer Education course before applying for assistance.
4. The property being purchased must be located within Pima County.

How Does it Work?

The process begins by contacting one of CIC's participating lenders who will pre-qualify you based on your credit score and debt-to-income ratio. Once pre-qualified and after completing an approved Homebuyer Education course provided by HUD-approved counseling agencies like Chicanos Por La Causa or Primavera Foundation), borrowers may apply directly through one of our participating lenders.

If approved, the borrower will receive a DPA loan that is secured by a second mortgage on the property. The loan has no interest and requires no monthly payments as long as the borrower occupies the home for at least five years. After five years, if you sell or refinance your home, you'll be required to pay back a portion of the assistance based on how long you've lived in it.

Benefits of Down Payment Assistance Loans

1. Helps first-time homebuyers overcome one of their biggest hurdles: coming up with enough money for a down payment.
2. Lowers monthly mortgage payments by reducing upfront costs associated with buying a house.
3. No interest or monthly payments are required for up to 5 years after closing.
4. Can be used in conjunction with other mortgage programs such as FHA, VA, USDA, or conventional loans.

Conclusion

A DPA loan can make homeownership more accessible and affordable for those who may not have been able to purchase without assistance. If you're interested in learning more about Down Payment Assistance Loans available through CIC in Pima County Arizona please visit our website www.cictucson.org/homeownership-assistance/ or call us at (520) 529-1766 today!