Arizona Housing Finance Authoirty- Down Payment Assistance Program!

Down Payment Assistance Program
The major stumbling block for many first-time homebuyers is the lack of sufficient funds for the downpayment and closing costs involved in the purchase of the home. The amount of assistance available under this program is adjusted based on the homebuyer's income:
Above 80% Area Median Income (AMI): up to 5% of the purchase price or appraisal whichever is less. 60-80% AMI: up to 10% of purchase price or appraisal, whichever is less, plus up to $3,000 for closing costs.~Below 60% AMI: up to 15% of purchase price or appraisal, whichever is less, plus up to $3,000 for closing costs.
~Maximum of $20,000 in combined assistance.

If the buyer is above 80% AMI, the assistance must be used with either the MRB or MCC programs. Buyers with incomes at or below 80% AMI must participate in homeownership counseling classes. These classes or meetings are free and are held at various times and in various locations around the state, excluding Maricopa and Pima Counties.
The amount of assistance is dependent on five factors:
1) Amount of household income.
2) Purchase price of the house or appraised value, whichever is less.
3) Actual closing costs on the house.
4) Amount of household savings and assets.
5) Other gifts or assistance the buyer may be receiving.
For more information on this program please visit http://www.housingaz.com/azhfa/dpap.aspx

FHA Lowers Loan Limits

FHA lowers limits on loans, an article from azcentral.com, reports that starting in January the new FHA loan limit for Maricopa County will be $271,050. The current FHA limit in the Valley is $346,250. So, for anyone interested in using an FHA loan to purchase a home - now is the time to do it. Every Arizona county will see their FHA loan limit drop to $271,050, except Coconino, where it will be $333,750.http://www.azcentral.com/arizonarepublic/business/articles/2008/11/19/20081119biz-catherine1119.html

Please call or email me with questions.
Staci McCarville
480-778-2614
staci.mccarville@prospectmtg.com

FHA Minimum Down Payment Increase

The minimum required investment of a home buyer utilizing a FHA insured mortgage will from 3% to 3.5%. The effective date is January 1, 2009 according to the revised Mortgagee Letter 2008-23, available on www.fha.gov.

Please call or email me with questions.

Staci McCarville
480-778-2614
staci.mccarville@prospectmtg.com