Qualified low to moderate income homebuyers can receive loans to cover down payment and closing costs under a program now offered within the Maricopa County Human Services Department through the federal Home Investment Partnerships Program. The program, funded by the U.S. Department of Housing and Urban Development, applies to properties in the unincorporated land within Maricopa County and within the city or town limits of Buckeye, El Mirage, Gila Bend, Goodyear, Guadalupe, Litchfield Park, Queen Creek, Tolleson, Wickenburg or Youngtown.
While the national HUD program annually allocates nearly $2 billion to this program, the Arizona portion is directed mainly to larger cities. The Maricopa urban county portion is $420,000, half of which goes to down payment assistance and the other half to homeowner rehabilitation projects, according to Ursula Strephans, assistant director for community development at the Maricopa County Human Services Department.
Applicants are required to complete a homebuyer counseling class and qualify for a mortgage. Individual incomes cannot exceed 80 percent of the area’s median income, which is $50,000 for a four-person household. The loan is zero percent interest and can be completely forgivable at the end of the five year period of affordability if the buyer stays in the house and meets other requirements.
“We at the county do a good job screening applicants and giving them the understanding of the responsibilities of home ownership,” Wilcox said. “This is a helping hand, not a hand out. Our awardees have been among the most stable residents in neighborhoods across the county.” A recent national study of 75,000 mortgage loans originated between 2007 and 2009 concluded that homebuyers who received pre-purchase financial and housing counseling and education were less likely by a third to become delinquent on their loans – this during the most severe period of the recession.
Residents in any of the eligible communities can learn more or apply for the program by e-mailing HOME@mail.maricopa.gov or calling 602-372-1533.