Last Fall our CTX Mortgage branch signed up with the Home in Five down payment assistance program. I attended the training program earlier this week and in addition to learning how this program works became a participating lender. To become a participating lender you must attend the training in order to help borrowers with this loan. From what I know, I am now part of a select group of loan officers in the Phoenix area who are able to offer this down payment assistance program to deserving borrowers.

The Home in Five program provides 5% down payment assistance to any homebuyer who meets the income and acquisition price limits. The household income requirements range depending on the area within Maricopa county. The program targets borrowers with moderate to lower incomes. The other factor that plays a significant role in the program is the area where the property is located.

The program defines three distinct areas within Maricopa county where the program can be used: non-targeted areas, targeted areas and priority areas. These areas are defined by the census tract number (not zip code) and is only for primary residence purchases in Maricopa county. If you’re curious about a particular property feel free to contact me and I’d be happy to check it for you. The income limit and property purchase price limit is then defined per the area your property falls under. So for example if your property happens to be in a targeted area then the income and acquisition price is a bit higher compared to a non-targeted area. A priority area has an even higher limit (since it’s a priority area).

This program is open to all kinds of buyers and you don’t have to be a first time homebuyer. Remember the standard definition of a first time homebuyer is anyone who has not had an ownership interest in a residential property within the past three years. So, if you’ve owned property before three years ago you will be classified as a first time homebuyer. If you are not a first time buyer then to use the Home in Five program you must purchase a property in a targeted or priority area.

Home in Five allows for both newly-constructed or existing homes and can only be used to purchase a home (no refinances allowed). While the most attractive feature is the 5% down payment assistance, the interest rate is also below market. The program works in conjunction with a VA, FHA or Fannie/Freddie loan and as such standard loan guidelines apply. Just so you know the money for this program comes through the Single Family Mortgage Revenue Bond Program administered by the IDA’s of City of Phoenix and Maricopa County.

This is a very brief overview of the program. Feel free to contact me and I can e-mail you a brochure or answer any questions you may have.