Yes, you have to qualify, but there is a grant program in Arizona that will cover your down payment! There are lots of loan programs out there, so it is worth talking to a lender and finding out what it will take to buy a home in 2016.
The Arizona Housing Finance Authority (AzHFA), acting on behalf of the Arizona Department of Housing, to assist creditworthy renters who can afford a mortgage but lack the resources for a down payment. The AzHFA “HOME Plus” Home Loan Program provides an attractive 30-year fixed-rate mortgage with a down payment assistance (DPA) grant that can be used toward the down payment and / or closing costs.
Program Details: 30-year fixed-rate mortgage – for today’s interest rates visit: http://www.ehousingplus.com/available-programs/arizona/arizona-hfa/ Down payment assistance (DPA) is a non-repayable grant for down payment and closing costs, equal to a percentage of the principal balance of the mortgage loan. DPA is only available in conjunction with a Home Plus loan and is funded by AzHFA at the mortgage loan closing. Qualified U.S. Military Personnel may receive an additional 1% of DPA on ANY mortgage type. Homebuyer Eligibility Requirements: Mortgage for the purchase of a Owner occupied, Primary Residences only. Borrower(s) Income not to exceed $89,088. Purchase Price limit not to exceed $356,352. All homebuyers are required to complete a pre purchase homebuyer education course through a HUD- approved homebuyer education provider. Options include online, over-the-phone and in person. Fannie Mae HFA Preferred & Freddie Mac HFA Advantage o LTV’s 95.01% – 97% 4% DPA Grant Minimum 680 Credit Score Single-Family Residences only (includes attached PUD’s/Townhomes) 18% MI w/payment options; borrower paid monthly, single premium and split premium. o LTV’s 95.0% or less 5% DPA Grant Minimum 640 Credit Score Single-Family Residences, Condos, Townhomes. 16% MI w/payment options; borrower paid monthly, single premium and split premium. o Maximum 45% debt-to-income ratio and Fannie Mae Preferred (variation of FNMA HomeReady) and Freddie Mac Advantage (variation of FHMLC HomePossible) underwriting guidelines apply. o Mortgages are provided to qualified borrowers purchasing owner occupied primary residences throughout the State of Arizona, excluding only Pima County. FHA, USDA-RD or VA mortgages o 3% DPA on FHA, 2% DPA on USDA-RD & VA o Minimum 660 Credit Score on FHA, Minimum 640 Credit Score on USDA-RD & VA o Maximum 45% debt-to-income ratio, and normal FHA/VA/USDA underwriting guidelines. o Single Family Residences, Condos, Townhouses, and 2 Unit residences. o Mortgages are provided to qualified borrowers purchasing owner occupied primary residences throughout the State of Arizona, excluding Maricopa & Pima County. First Step: The Homebuyer MUST work through one of AzHFA approved and participating mortgage lenders. The lender will be your point of contact throughout the process, working with the homebuyer to obtain a program qualifying mortgage and registration for the down payment assistance grant. A list of program participating lenders can be found at our website: www.azhousing.gov.