The Pathway to Purchase “P2P” Down Payment Assistance (DPA) Program is back! Featuring 10% Down Payment Assistance up to $20,000, there is a lot of excitement regarding this program.
The funding for the Pathway to Purchase Program is provided by the US Department of the Treasury through the Troubled Asset Relief Program (TARP); Hardest-Hit Fund. The P2P Program has a $15,000,000 commitment from the Arizona Home Foreclosure Prevention Funding Corporation Hardest-Hit fund allocation for this relaunch. Funding is available as of August 1, 2018.
- The assistance amount is 10% of the sales price, up to $20,000!
- The assistance funds come as a five-year, 0% interest, no payment Second Mortgage. The loan is 100% forgiven after five years!
- The funds from the P2P DPA second mortgage can be used for down payment, closing costs / prepaids and mortgage insurance premiums.
- The first mortgage will be a conventional 30 year fixed rate loan under the Fannie Mae HFA Preferred program.
- The program is limited to targeted zip codes in these cities: Bullhead City, Casa Grande, Glendale, Green Valley, Kingman, Phoenix, Rio Rico, Sahuarita, Sierra Vista, Tucson, Vail and Yuma.
- Mortgage for the purchase of an Owner occupied, Primary Residences in targeted areas.
- Borrower Income not to exceed $92,948.
- Purchase Price limit not to exceed $371,936.
- 640 Minimum FICO Score
- Existing properties only, new construction is not allowed.
- Manufactured homes not allowed
- Each borrower must complete a Homebuyer Education course before closing. There are several options for this education. We recommend the free course CreditSmart offered through Freddie Mac.
- The property must be an existing 1-unit, single-family home, condominium unit, and townhome dwelling occupied by the homebuyer as his or her principal residence.
- The property purchased must be an existing structure. Newly-constructed properties, including spec homes and model homes, are not eligible for the program.
- Manufactured homes and mobile homes, recreational, seasonal or other types of vacation or non-permanent homes are not permitted.
- IMPORTANT – At closing, the borrower and spouse may not own any interest in another residential dwelling. Manufactured housing is considered a residential dwelling for this purpose. A time share interest is not considered as ownership of a residential dwelling.
- Borrowers must occupy the property within 60 days of closing.
- Non-Occupant Co-Borrowers are not allowed.
Timing / Logistics
- Only $1,500,000 is available state-wide per month. Once the full $1.5M is reserved in a given month, no reservations will be accepted until the following month
- Must have an accepted, fully-signed purchase contract, have completed your homebuyer education and signed the program forms prior to reserving funds
- Home purchase must fund/close and record within 45 days of reserving funds
Worried about the fine print? Call us today for more details. We’re here to answer any questions you have. If you want to see copies of the forms you will have to sign, click here.