PHOENIX--(BUSINESS WIRE)--The Arizona Department of Housing (ADOH), acting jointly with the Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC), announced that it has launched Pathway to Purchase, a new loan program for Arizonans statewide looking to become homeowners in select cities.
“With the escalating increase in rents, many creditworthy renters are finding it more and more difficult to save for a down payment,” said Reginald Givens, with the Arizona Department of Housing. “With the Pathway to Purchase program, this obstacle has been removed. Pathway to Purchase gives qualified buyers a true pathway to homeownership, with a second mortgage provided as a deferred and potentially forgivable loan that can be used for down payment and closing cost assistance.”
The ADOH Pathway to Purchase home loan program provides an attractive 30-year, fixed-rate mortgage with a down payment assistance (DPA) second mortgage, equal to 10 percent of the purchase price (up to $20,000 maximum), to qualifying homebuyers purchasing a primary residence which they intend to occupy in within the cities of Arizona City, Avondale, Buckeye, Casa Grande, Coolidge, Douglas, El Mirage, Fort Mohave, Goodyear, Huachuca City, Laveen, Maricopa (city), Red Rock, Sierra Vista, Snowflake and Yuma. The DPA is provided as a second lien against the property that can be used for the down payment and closing costs. The five-year deferred loan will be forgiven at the completion of five years with no payments and no interest due. New construction and manufactured homes are not currently permitted.
The Pathway to Purchase program is available to homebuyers with an annual household income equal or less than $89,088, purchasing homes not exceeding $356,352. First-time, boomerang and move-up homebuyers should find the program especially helpful. Homebuyers must work through an ADOH-approved and participating lender to obtain a Fannie Mae HFA Preferred, 30-year fixed mortgage. Funding for the Pathway to Purchase DPA Second Mortgage Program is provided by the U.S. Department of Treasury’s Hardest Hit Fund and has a $48 million allocation through the Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC). Funds are available on a first-come, first-served basis.
To learn more about AzHFA Pathway to Purchase DPA Second Mortgage Program, please visit www.azhousing.gov or call 602-771-1000.
About Arizona Department of Housing
The Arizona Department of Housing provides programs and critical resources to the most vulnerable populations of the state, while serving as a driver for economic development and leveraging private capital. Whether it is through their work to provide safe and affordable housing, assistance to help aid the homeless and special needs populations, or their ongoing efforts to prevent Arizonans from losing their homes, ADOH is committed to finding responsible and reasonable solutions to meet the housing needs for the people of Arizona.