Since 1990, CHRA has provided downpayment/closing
cost grants or loans to over 1,000 low-income, first-time
homebuyers. Downpayment/closing cost assistance programs
have been funded by the Arizona Housing Trust Fund,
the City of Phoenix, The Industrial Development Authority
of the City of Phoenix, the Federal Home Loan Bank Affordable
Housing Program, the Norwest Housing Foundation, the
City of Glendale and the Town of Gilbert. Maximum grants
or loans range from $1,500 to $40,000. Eligibility for
the following downpayment programs include being a first-time
homebuyer with household incomes below 80% area median
income (exception: income levels differ for the Wells
Fargo program). Through the use of grants and loans,
CHRA has encouraged homeownership among groups who are
traditionally under represented as homeowners including
very low income households, single parent households,
ethnic minority households and persons with disabilities.
City of Phoenix American
Dream Downpayment Initiative
(ADDI) Program
The American Dream Downpayment Initiative program
(ADDI) is a $10,000 downpayment and closing cost assistance
program offered by the City of Phoenix Housing Department
through a partnership with CHRA. Eligible first time
buyers with total household incomes below 80% of area
median income will receive a deferred payment $10,000
loan to be used towards down payment and closing costs.
Homeownership counseling required by the ADDI program
is furnished by CHRA. Homes purchased must be within
Phoenix city limits and program participants must
contribute a minimum of $1,000 from personal funds
for downpayment or closing costs.
City of Glendale’s
American Dream Downpayment Initiative
(ADDI) Program
In 2005, CHRA was awarded the contract for pre-purchase
counseling and administration of the City of Glendale’s
ADDI program. Glendale is working to increase homeownership
opportunities for low-income, first-time households
and seeks to increase its owner-occupancy rate. Additionally,
Glendale feels that providing financial incentives
to homebuyers will also encourage reinvestment in
Glendale’s neighborhoods. The program provides
0% interest loans to eligible households with total
household incomes below 80% of area median income
wishing to purchase a primary residence within Glendale’s
city limits. Loans of up to $7,500 are available for
downpayment assistance, prepaid expenses and reasonable
closing costs. The loans are 100% repayable upon sale,
refinancing or rental of the property.
Town of Gilbert Downpayment
Assistance Program
In 2002, CHRA was awarded a contract by the Town of
Gilbert to administer a pilot program designed to
increase homeownership opportunities for low-income
Gilbert residents. The program provides one-on-one
pre-purchase counseling and 0% interest downpayment
assistance loans of up to $40,000. The loans are 100%
repayable upon sale, refinancing or rental of the
property. The availability of the downpayment assistance
loans makes a greater number of Gilbert homes available
to low-income, first-time homebuyers.
The City of Phoenix
Industrial Development Authority’s
Homeownership Incentive Program
CHRA provides a three-year 0% interest forgivable
loan of up to $1,500 which can be used to pay a portion
of downpayment or closing costs to purchase a home
located in the City of Phoenix. Eligible families
or individuals would have total household incomes
below 80% of area median income. Program participants
must complete prepurchase counseling with CHRA, contribute
a minimum of $1,000 from personal funds towards downpayment
or closing costs, have acceptable credit and qualify
for a fixed-rate mortgage.
Wells Fargo
Mortgage Assistance Program
A partnership between Wells Fargo Bank and the Local
Initiatives Support Corporation (LISC) has created
the Wells Fargo Mortgage Assistance Program which
makes up to $10,000 in downpayment assistance available
to low and moderate income home buyers participating
in non-profit sponsored affordable housing programs
within Maricopa County. Homebuyers earning:
- 50% or less than the area median income are eligible
for up to $10,000 in assistance
- 51% – 80% of area median income can qualify for
up to $5,000
- 81% – 100% of area median income may be eligible
for up to $1,000
Program assistance is offered in the form of a deferred loan with a 5-year term. At the end of the loan term the full amount of the loan will be forgiven if the home has not been resold. If the home sells prior to the end of the term, the full amount of the deferred loan will become due and is repaid to the Program. CHRA determines program eligibility and provides the required prepurchase counseling. Eligible households must have acceptable credit and qualify for a fixed rate mortgage through Wells Fargo Home Mortgage.
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