Important Information About
Your Way Home Arizona Loan Program

On February 17, 2009, the President signed into law the "American Recovery and Reinvestment Act of 2009". One of the key provisions of the act was to authorize the Department of Housing and Urban Development (HUD) to provide neighborhood stabilization funds to the states in an effort to stabilize the continuing deterioration of the housing market and increasing neighborhood blight caused by vacant foreclosure properties. As a result, The Arizona Department of Housing (ADOH) has received approximately 39 million dollars. Effective statewide on July 1, 2009, ADOH will begin offering purchase assistance to qualified homebuyers purchasing an eligible foreclosed home in the state. This aide will be in the form of a deferred second mortgage.

Following is a list of the program's requirements:

1. The borrower's household income must be 120% or less of the median income for the county of residence. County Income Limits
2. The borrower cannot currently own a residence. If the borrower owns a property, it must be leased out for at least 12 months before applying for the program.
3. The borrower must use an approved lender from the ADOH participating lender list.
4. The borrower must complete an 8-hour homebuyer education course.
5. The borrower must occupy the property as a primary residence.
6. Maximum income to debt ratios are 31% (housing) and 43% (total debt).
7. To be eligible, a property must be a detached SFR, condo or townhome and be bank owned and vacant.
8. A three percent down payment is required. One percent must come from buyer's own funds (the remaining two percent can come be a gift or grant from an acceptable source).
9. The sales price must be at or below the county limits per the Arizona Department of Housing (Maricopa county limit is $346,250).
10. The borrower must have two months PITI in reserves.

The ADOH will provide eligible borrowers a second mortgage of up to 22% of the sales price. This second mortgage is at zero percent interest and has no monthly payments. The balance of the loan is completely forgivable at completion of the term (see below).

• 5-year term for a loan amount of $15,000 or less
• 10-year term for a loan amount of between $15,000 and $40,000
• 15-year term for a loan amount of more than $40,000

If the borrower sells the property or converts it from a primary residence prior the expiration of the above terms, repayment of the second mortgage is required.

* This program is still a huge benefit to the borrower. For the time that they own the property, they have had an interest and payment free mortgage for 22% of the sales price!! *