Loan Programs - Hageman Homes - DeLex Realty
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Loan Programs

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Loan Programs

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USDA Loan

With a USDA Loan, there is no down payment required. There is also no Private Mortgage Insurance necessary. Regarding your credit score, there is some flexibility. A Credit score of 640 or higher will get you the fast pass to the front of line. You still can qualify with a lower credit score but the lender may need some additional history information. Restrictions on income and eligible areas are two cons with this type of loan.

 

Home in Five Advantage Program

If you are looking to buy a home and need help with your down payment and with closing costs, you should definitely consider the Home In Five Advantage Program.  Home In Five is an excellent down payment assistance program. You can get assistance for a down payment and/ or help with closing cost up to 3%. What’s the catch? The grant you receive is a silent 2nd Mortgage that last for 3 years, with no interest or payment. After the 3 years you can refinance.   There is also another 1% available for Veterans and active duty Military. You do not have to be a first time homebuyer to qualify either.  This program can be combined with other government loan programs that can give you a total of 5% CASH towards your down payment.

 

Conventional Loan

Conventional loans aren’t for those looking for down payment assistance.  These loans have low rates for borrowers with good to excellent credit scores. There are no limits on your income, the area, or occupancy type. The primary benefit is that mortgage insurance is only required if you are financing more than 80 percent.

 

 

FHA Loan

With an FHA loan, there are flexible guidelines. In comparison to Conventional loans, an FHA loan is more forgiving on credit. Lower credit is accepted and there is higher allowance for DTI (debt to income) – up to 56.9%.  FHA offers a low interest rate and no reserves required for 1 to 2 unit properties. Down payment can be as low as 3.5 percent. Another plus, you are able to finance 3 years after bankruptcy. However, mortgage insurance is required for the duration of the loan.

 

VA Loan

VA Loans do not require a down payment and they have flexible credit guidelines as well. VA loans are a specific loan that is only available for veterans. With a VA loan, there is no requirement for Private Mortgage Insurance (PMI), which is required on a conventional loan if you are unable to make a down payment of at least 20 percent. This type of loan also allows for a higher DTI Ratio. Typically a debt-to-income ratio of 41 percent or less is accepted. This is a higher allowance than conventional loan.  Another perk is that there is a no prepayment penalty. A VA loan is also flexible with bankruptcy and foreclosure rules. Those who qualify are eligible for a VA loan after two years of bankruptcy.

 

Home Plus

The Home Plus mortgage program offers a great variety of opportunities to homebuyers in Arizona that need down payment assistance. The perk to this program is that there isn’t a minimum amount that you have to provide to close. This means you could potentially have all your closing costs and your down payment covered. For most programs, you don’t have to be a first time homebuyer. How it works: the assistance money received is a silent second mortgage that has no interest, no payment and is forgiven monthly over the first three years. The maximum income would be $99,170 and the maximum purchase price $396,680. Unlike other programs, the money continues to be consistently available.

 

Chenoa

Chenoa is an affordable housing program. Chenoa Home Loan Program is another loan that allows you to get into a home without a down payment. Chenoa follows the FHA guidelines, which makes for an easy approval. A minimum credit score of 620 is required. There are no income restrictions. Chenoa Fund provides up to 3.5 % down payment. This allows for 100% financing possible.

 

Pathway to Purchase (Out of Funds)

Pathway to Purchase is another down payment assistance program. How it works, the program offers a 30 year fixed rate mortgage and a second mortgage as down payment assistance. The down payment assistance is a five-year lien against the property you purchase at 0% interest. Some requirements are that the home you are purchasing has to be your primary residence. There is a max income of $92,984 and your purchase price can not exceed $371,936.

 

AZ HFA Preferred

With AZ HFA Preferred program, you can get up to 5% towards your down payment. The AZ HFA program was created for individuals and families that want down payment assistance but qualify for a conventional mortgage. There are some income limitations and debt-to-income (DTI) that apply. One positive is that you don’t have to be a first-time homebuyer with this program; as well. $371,973 is the maximum purchase price to qualify for this program. Homebuyers must have a minimum credit score of 640 and their DTI can not exceed 45%.

 

Open Doors Homeownership Program

The Open Doors program is intended for eligible first time homebuyers to purchase an affordable home. The program can assist with up to $15,00 towards your down payment and closing costs. This program can even be used with other homeownership assistance programs, and has an interest rate of 0% with no monthly principal payments! To qualify for this program, applicants are required to participate in a pre-purchase homebuyer education course and counseling (8 hours.)

 

Arizona Dream Down payment Initiative (ADDI)

ADDI is another program that provides down payment and closing cost assistance to qualified buyers. There is a limit of 6% or max $10,000 of assistance. ADDI is intended for first time homebuyers interested in purchasing a single-family home. This program helps low income families get into their first home.

 

Bank-Sponsored Down-Payment-Assistance Programs

Some major mortgage banks offer their own style of a Down-Payment-Assistance program, and it usually takes this shape: the borrower comes up with 1.5% of the purchase price, and the bank provides an additional 2% toward the down payment, all for a total of 3.5%.  While it requires a bit more out of pocket from the borrower, the advantage is that both a slightly lower credit score and a higher DTI are permitted – the latter means the borrower can qualify for a larger mortgage than with other down-payment-assistance programs.  As with any mortgage where more than 80% is borrowed, mortgage insurance is required.

To find out which program will work best for you and your family fill out the form on this page and one of our consultants will contact you to get you access to one of these programs!

 


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