What is “Homes for Arizonans”?
Homes for Arizonans replaced the Rural Housing Assistance Program (RHAP) as of January 1, 2004. The program has been specifically designed to help low-to-moderate income first-time home buyers to purchase a home. Income levels for those eligible for the program were increased to $67,275 for 2008.
How does “Homes for Arizonans” work?
Because first-time home buyers are often confused about the home purchase process and discouraged by high property values, all program participants are encouraged to attend a Homes for Arizonans Workshop. Program participants receive 6-8 hours of extensive, plain language information about mortgage lending, credit and real estate.
Eligible program participants receive Financial Assistance (0 percent interest, no payment loans) up to $20,000 to apply toward down payment and closing costs. Actual assistance depends on program participant’s income and purchase price/appraised value of home.
Homes purchased with Homes for Arizonans assistance must be owner-occupied and serve as a primary residence. The loan must be re-paid upon sale of home or refinanced with cash out.
How do I qualify?
YOU MUST BE A FIRST-TIME HOME BUYER. Families, including single people who are first-time home buyers and whose annual income does not exceed $58,500 for up to two family members or $67,275 for three or more, where the housing unit will be purchased, are eligible for Homes for Arizonans. The family must meet this requirement at the time that the house is purchased. A first-time home buyer is someone who has not owned a home within the past three years. Manufactured homes that are not permanently affixed to land (taxed together) and is considered personal property as opposed to real estate. If you own a manufactured home and no land, or if your manufactured home has not been permanently affixed to your land, you are considered a first-time home buyer for program purposes!
Homes for Arizonans will provide down payment and closing cost assistance to households earning up to 100 percent of Area Median Income (AMI) for the county of residence for a family of one or two and 115 percent for a family of three or more.
Home buyer education and counseling is required for all loans made to households.
All loans are zero interest, zero down payment. All loans for the program are “DUE on sale” – to be repaid upon sale of home.
Down payment assistance is based on income level and will be a percentage of the sales price, as follows:
80% AMI and Above |
5% of purchase price towards down and/or closing costs |
61% – 80% AMI |
10% of purchase price plus $3,000 towards closing costs |
60% AMI and Below |
15% of purchase price plus $3,000 towards closing costs |
Minimum buyer contribution $1,000 to 3% depending on loan program offered by lender. |
Maximum assistance level is increased for all loans to $20,000. This includes down payment and closing cost assistance. The beneficiary on the Deed of Trust will be the Arizona Department of Housing or Arizona Housing Finance Authority, depending on the source of funding.
Income Levels
In order to receive financial assistance from the Homes for Arizonans program your gross income (before taxes and withholding) cannot exceed these guidelines.