Down Payment Assistance Loan Yuma County Arizona

Down Payment Assistance Loan in Yuma County, Arizona

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

One such option is the Down Payment Assistance (DPA) loan program offered by Yuma County. This program provides eligible borrowers with funds to cover their down payment and closing costs when purchasing a home within the county.

How does the DPA loan work?

The DPA loan is a second mortgage that works alongside your primary mortgage. The amount of assistance provided varies depending on your income level and other factors, but typically ranges from 3% to 5% of the purchase price of the home.

Unlike traditional loans, you don't have to repay the DPA loan until you sell or refinance your property or pay off your primary mortgage. In some cases, if you live in your home long enough, part or all of the DPA loan may be forgiven.

Who is eligible for a DPA loan?

To qualify for a DPA loan in Yuma County, you must meet certain criteria:

Be a first-time homebuyer (or haven't owned a home in three years)
Have an annual household income at or below 80% of Area Median Income (AMI)
Purchase a single-family residence within Yuma County
Occupy the purchased property as your primary residence
Complete an approved Homebuyer Education Course

If you meet these requirements and are interested in applying for a DPA loan, contact one of our participating lenders who will guide you through every step of this process.

What are some benefits of using DPAs?

There are several advantages associated with using DPAs:

1) Reduced upfront costs: With DPAs covering most or all of your down payment and closing costs, you can save a significant amount of money upfront.

2) Lower monthly payments: By reducing the amount you need to borrow for your primary mortgage, DPAs can help lower your monthly mortgage payments.

3) More affordable homeownership: With reduced upfront and ongoing costs, DPAs make homeownership more accessible to lowand moderate-income families who might otherwise struggle to afford it.

4) Potential loan forgiveness: Depending on how long you live in your home, part or all of the DPA loan may be forgiven. This means that you won't have to repay the full amount borrowed.

Conclusion

If you're a first-time homebuyer in Yuma County struggling with saving enough money for a down payment, consider applying for a Down Payment Assistance (DPA) loan. This program provides eligible borrowers with funds to cover their down payment and closing costs when purchasing a home within the county. With reduced upfront and ongoing costs associated with using DPAs, this option makes homeownership more accessible to lowand moderate-income families who might otherwise struggle to afford it. Contact one of our participating lenders today if interested!