AZ Conventional Loan Down Payment Assistance Program
The Arizona Conventional Home Plus home loan program is very popular because it offers assistance that can be used for down payment and/or closing costs equal to as much as 5% of the mortgage loan.
The main advantage to a conventional loan is that there is more flexibility related to mortgage insurance. Conventional loans require mortgage insurance if your down payment is less than 20%; however, you have the option of removing it in the future.
Another benefit is that mortgage insurance is typically cheaper with a conventional loan than it is with a FHA loan. So, your payments could be lower.
Arizona Conventional Home Plus Program Highlights
- Down payment assistance options between 1% and 5%. You can choose what is best for you based on your loan scenario.
- No first time home buyer requirement for most programs.
- Qualified members of the U.S. military (active and Veterans) are eligible for an additional 1% of down payment assistance.
- The money is consistently available.
- The assistance money received is a silent second that has no interest, no payment and is forgiven monthly over the first three years of home ownership. The lien is completely forgiven after you stay in the home for three years without refinancing. The purpose of the silent second is to provide stability and ensure the ongoing success of the Home Plus Assistance Program in Arizona.
Home Plus Fannie Mae HFA Preferred Loan Program
This program is derived from the Fannie Mae HomeReady program and is one of the Arizona conventional Home Plus loan programs offered. It is offered anywhere in Arizona.
Home Plus Freddie Mac HFA Advantage Loan Program
This program is derived from the Freddie Mac Home Possible Advantage program and is the other Arizona conventional Home Plus loan programs offered. It is offered anywhere in Arizona.
Additional Program Highlights:
- The Home Plus Fannie Mae HFA Preferred Loan Program offers down payment assistance options between 1% and 5%. You can choose what is best for you based on your loan scenario.
- The Home Plus Freddie Mac HFA Preferred Loan Program offers down payment assistance options of 3%, 4% and 5%.
- Minimum FICO score is 640. Some of the program options used to require a minimum FICO score of 660.
- Maximum purchase price of $396,680
- Maximum debt-to-income of 45%
- Maximum income of $99,170
Is the Arizona Conventional Home Plus down payment assistance program right for you? Let’s find out.