Down Payment Assistance Loan Yavapai County Arizona

Down Payment Assistance Loan in Yavapai County, Arizona

Are you looking to buy a home in Yavapai County, Arizona but struggling to come up with the down payment? You're not alone. Many people find it challenging to save enough money for a down payment on their dream home. Fortunately, there are options available that can help make homeownership more accessible.

One such option is the Down Payment Assistance Loan (DPAL) program offered by the Yavapai County Community Development Department. This program provides eligible borrowers with a loan of up to $10,000 towards their down payment and closing costs.

Who is Eligible?

To be eligible for DPAL, applicants must meet certain criteria:

The property being purchased must be located within Yavapai County.
The borrower's income cannot exceed 80% of the area median income.
The borrower must contribute at least $500 towards the down payment from their own funds.
The borrower must complete an approved Homebuyer Education Course prior to closing.

How Does DPAL Work?

The DPAL loan is structured as a second mortgage on the property being purchased. It has no interest or monthly payments and is due upon sale or transfer of ownership of the property or if it ceases to be owner-occupied within five years from closing.

For example, let's say you are purchasing a home for $200,000 and have saved $5,000 towards your down payment. With DPAL assistance, you could receive an additional loan of up to $10,000 towards your remaining down payment and closing costs. This would bring your total out-of-pocket expenses at closing down from $15k ($5k +$10k)to just $5k($0+$5K).

Why Choose DPAL?

There are several benefits associated with choosing DPAL:

1) Lower upfront costs: By providing financial assistance toward your initial investment into your home, DPAL can help you reduce the amount of money needed upfront to purchase a home.

2) No interest or monthly payments: Unlike traditional loans, DPAL does not accrue interest and has no monthly payments. This means that borrowers do not have to worry about making additional payments on top of their mortgage payment.

3) Affordable repayment terms: The loan is due upon sale or transfer of ownership of the property or if it ceases to be owner-occupied within five years from closing. This provides borrowers with ample time to build equity in their homes before having to repay the loan.

4) Accessible for low-to-moderate income households: With an income cap set at 80% of the area median income, DPAL makes homeownership more accessible for those who may not otherwise qualify for traditional financing options.

How Do I Apply?

To apply for DPAL, interested applicants must first complete an approved Homebuyer Education Course. Once completed, they can contact Yavapai County Community Development Department's Housing Services Division at (928) 771-1005 or visit https://www.yavapai.us/communitydevelopment/housing-services/homeownership-assistance-programs/down-payment-assistance-loan-dpal-program/for more information and application instructions.

In conclusion

The Down Payment Assistance Loan program offered by Yavapai County Community Development Department is a great option for those looking to purchase a home in Yavapai County but struggling with down payment costs. With its affordable repayment terms and accessibility criteria, this program could be just what you need to make your dream of homeownership a reality!