In a survey conducted by Wells Fargo Home Mortgage and Ipsos Public Affairs, they found out that 36 percent of respondents believe that a 20 percent down payment is required to purchase a home. As you know, this is not the case anymore. Buying a home is now a lot more affordable with the many Arizona Down Payment Assistance Programs.
I understand that pulling together money for a down payment can be challenging especially to millennials. We are haunted by student loans, credit card debt, car loans and low-paying jobs. These things alone can have an effect on saving up a sizable amount of money to purchase a home. But thanks to the many state, county, and city governments who offer financial assistance to people in their communities who are well qualified and ready for homeownership, this is no longer a real issue.
What are the types of Down Payment Assistance?
The three main types of down payment assistance are grants, second mortgage loans, and tax credits.
- Grants – Grants are funds that you do not have to pay back as long as you own and occupy your home for a certain period of time.
- Second mortgage loans – The most common down payment source, many second mortgage loans offered by state and local governments have low or zero interest rates, and the payments are deferred over a specified time span and, in many cases, the loan is completely forgiven over time.
- Tax credits – Certain states and local governments, including housing finance agencies, issue mortgage credit certificates, which reduce the amount of federal income tax you pay. This makes more money available upfront for your down payment or closing costs.
The most popular types are the grants and second mortgage loans. These program terms vary but for the most part, they DO NOT have to be paid back. You may look into some of the programs available in Arizona.
Arizona Downpayment Assistance programs
“How Do I Apply for Arizona Down Payment Assistance?”
Applying for one of the Arizona down payment assistance programs is quite simple. It starts the same way as if you were applying for a home loan. You first fill out an application for a home loan. After the application is complete, I will give you a call so we can go over your information. Part of the process also includes pulling up your credit report. You need to have a certain score in order to qualify for one of the programs. One of the great things about AmeriFirst Financial, Inc. is that our in-house down payment assistance programs allow you to qualify with a credit score of as low as 620. Most of the other down payment assistance programs in Arizona require you to have a score of 640 or better.
Once we receive your credit report, we then go over it together. We determine if you are eligible for one of the programs, and if so, which one. If your score isn’t high enough to qualify, there are a few things we do.
We run a credit simulator to see what things we can do to it to make your score improve the quickest. I give you tips and tricks to increase your score so that we can get you qualified ASAP. Once such changes have been made, I have the ability to rapid rescore you which allows us to get an updated and improved score without having to wait 30-60 days for an update.
Once we have the application and credit report, we require that you submit some documents to verify your income, assets, employment and other necessary information. When these things are completed, we calculate what you can afford as well as a purchase price. We can have an approval in less than 60 minutes.
Time to go shopping
With an approval in hand, it’s time to go shopping for your home. We put you in contact with one of our agent partners who will take you to check out homes until you find the one that’s perfect for you. At this point, we all work collectively to get your offer accepted.
That’s pretty much the process. If you have any questions and would like to apply for an Arizona Down Payment Assistance Program to help cover your home down payment, please contact me or you can fill out an application online which is safe and secure.
