Home in 5 Down Payment Assistance Program

The Home in 5 Down Payment Assistance program offers eligible homebuyers up to 8% in down payment assistance. This is a great program that makes homeownership more accessible and affordable for those who need help with their down payment.

Below, we’ll walk you through the Home in 5 Program, the eligibility requirements you’ll need to meet, the loan terms, and down payment assistance(DPA) percentages available through the program. The Home in 5 Program is an amazing program for homebuyers, but it’s important you understand all of the pros and cons beforehand.

Home in 5 Eligibility Requirements

To qualify for the Home in 5 Program, homebuyers must meet certain eligibility requirements. These include a minimum FICO credit score of 640, a maximum 45% debt-to-income (DTI) ratio, and income limitations for eligible borrowers.

Another requirement for Home in 5 is that all homebuyers must attend a mandatory homebuyer education course and receive a home inspection.

Home in 5 Homebuyer Education

Attending a homebuyer education course is an essential part of the Home in 5 Program. The homebuyer education course is designed to arm new homeowners with information about the homebuying process, homeownership, mortgage basics, and more.

The course typically covers topics around budgeting, credit management, and home maintenance, which are essential for long-term homeownership success.

The course is typically offered by HUD-approved housing counseling agencies, which are available throughout Maricopa County.

For information on where to find HUD-approved housing counseling agencies that offer the Pre-purchase Homebuyer Education course, visit the HUD.gov website.

What are the Benefits of Home in 5?

The Home in 5 Program offers up to 8% in down payment assistance for eligible homebuyers in Maricopa County. The additional funds for the down payment comes in the form of a grant, which means you won’t have to pay it back as long as you stay in the home for the required term.

Qualified United States military personnel, teachers, first responders, firefighters, EMTs, and some prison workers may be eligible for an additional 1% down payment/closing cost assistance grant.

Home in 5 Loan Size and Term

The Home in 5 Advantage program offers second loans with various terms and sizes, depending on the type of first mortgage loan. For government first loans only (FHA, VA), there are second loan options with 3-year terms, sized at 3%, 4%, or 5% of the final first mortgage loan amount, rounded down to the nearest dollar.

For Fannie Mae HFA Preferred or Freddie Mac Advantage only, second loan options are available with 7-year terms, sized at 4%, 5%, 6%, or 7% of the final first mortgage loan amount, rounded down to the nearest dollar.

Additionally, 30-year second loan options are available with 3%, 4%, or 5% of the final first mortgage loan amount, rounded down to the nearest dollar. It’s important to note that size availability is subject to market conditions.

Home in 5 Repayment Terms

One of the key benefits of the Home in 5 Program is the down payment assistance provided through second loans. It’s important to understand that these second loans are evidenced by a Second Promissory Note and a recorded Second Deed of Trust.

While it may seem concerning to take out a second loan, it’s important to note that the 3-Year, 7-Year, and 30-Year Second Loans provided through the Home in 5 Program do not require repayment unless you sell or refinance within those time periods.

It’s important to note that the second loans provided through the Home in 5 Program are not subject to interest, fees, or monthly payments.

Home in 5 Application Process

As your mortgage broker, we understand that the homebuying process can be complex and overwhelming. We’re here to help guide you through every step of the Home in 5 loan application process.

Once you finish your loan application, your loan officer will help you to gather all necessary documents, ensure you meet the program’s eligibility requirements, and submit a complete file to the appropriate lender. We will be right there with you every step of the process from application to closing!

Home in 5 Partnering Organizations

The Home in 5 Program is a partnership between the Industrial Development Authority of Maricopa County and the Industrial Development Authority of the City of Phoenix. These organizations work together to help homebuyers obtain FHA, VA, or USDA-RD loan financing to purchase a home.

Want to Learn More about Home in 5?

The Home in 5 Program offers eligible homebuyers in Maricopa County a unique opportunity to receive down payment assistance and access to education and inspection services. With second loans available with different terms and sizes and up to 8% in down payment assistance, homebuyers can have the flexibility they need to make their dream of homeownership a reality.

By providing down payment assistance and access to education and inspection services, the program ensures that homebuyers are fully equipped to make informed decisions.

Don’t let the down payment be a barrier to homeownership – apply for the Home in 5 Program today and take the first step towards owning your dream home.