22% Forgivable Seconds! Your Way Home AZ Grant Program

The “Your Way Home AZ Grant Program” is a program set up for purchase assistance of foreclosed homes. The borrower must qualify for a 75% 1^st mortgage as they would with a standard purchase transaction. The state will provide a 22% 2^nd mortgage with no interest (silent 2^nd). A 3% down payment is required.

75% 1^st + 22% 2^nd + 3% Down Payment = 100%

This program is for buyers of foreclosed properties only.

$20M available for purchase assistance.

The program does not limit closing cost paid by seller.

Must have 3% down, regardless of what mortgage product is used for the financing of the 1^st 75% (VA, USDA, Conventional, FHA, etc).

Income cannot be greater than 120% of median for household by county.

www.yourwayhomeaz.com Click on: Am I Eligible, to find out if you can qualify based on household income ( income is for ALL people over 18, regardless of them being on the loan application).

The purchase price of the home MUST be 1% less than appraised value.

Subsidy by the state is 22% of the purchase price.

The program only applies for a primary residence.

Consumers must complete 8 hours of homebuyer education program.

There are specific debt to income rations that apply for the program. All income from all household members over 18 are used in the calculations even if they are not on the 1^st mortgage loan application.

A 2 month Principal, Interest, Taxes, and Insurance reserve is required.

Single family residence, Condos, Townhomes, and Manufactured homes qualify.

Property must be vacant at the time it was listed.

The 2^nd is forgiven ( don’t have to ever pay it back) if the2nd mortgage loan amount is:

$15K or less and you live in the property for five plus years.

If more than $15K but less than $40K if you live in the property for ten plus years.

And if more than $40K if you live in the property for fifteen plus years.

The maximum qualification is based on FHA loan limits for the county the property is being purchase in.

The 1^st mortgage has to be 75% of the purchase price.

Three things will trigger repayment of 2^nd mortgage ( grant money)

Transfer of Ownership

Vacating the property

Refinancing the property (even if it is a rate and term refinance)

Can close with FHA 1^st mortgage with a 3% down payment not 3.5%, because that half percent would come from this grant program.

FHA 203K loans cannot be used with this program.

The minimum down payment is 3%, 1% must come from the borrower’s own funds, 2% can come from any approved source such as non-profit- if that works for the 1^st mortgage lender it should work for this program.

This information was graciously supplied by 1^st Rate Home Mortgage, Inc.

For more information on this program go to www.yourwayhomeaz.com

For additional information on homes available in the Phoenix and Scottsdale Metro Area please call:

Tim Broderick @ 602-741-0862 or toll free @ 888-481-4447 ext. 126.

You can also reach me by email: tim@phoenixpowersearch.com.