Arizona Home Plus Mortgage Loan Program

The AzHFA Home Plus Mortgage Loan Origination Program provides an attractive 30-year fixed-rate mortgage with a down payment assistance (DPA) grant to qualifying homebuyers purchasing a primary residence which they intend to occupy throughout most of Arizona. The loan program is currently not available in Pima County. The DPA is provided as a non-repayable grant that can be used for the down payment and closing costs, equal to four percent of the initial principal balance of the mortgage loan. Qualified U.S. military personnel and veterans may receive an additional one percent of DPA for a total of five percent of the mortgage amount. The DPA is only available in conjunction with a Home Plus loan and is funded by AzHFA at the mortgage loan closing. Home Plus users do not need to be first-time buyers.

To learn more about AzHFA Home Plus Mortgage Loan Origination Program, please visit or call 602-771-1000.

First-time Homebuyers Stymied

Education comes at a price, and not just the cost of the degree itself. We’re talking about the inability to take advantage of today’s low mortgage rates and stable prices.

Student loans are now cited most often by young buyers as the main expense that prevents them from saving for a down payment. Nothing new there, perhaps. But a new report is the first to quantify the impact.

According to John Burns Real Estate Consulting, some 414,000 new home transactions will be lost this year because of student debt. At the average price of $200,000 per house, that translates to about $83 billion in lost business.

Fannie Mae Cash Incentives

Want to buy cheap homes homes?

Fannie Mae wants to help:

Fannie Mae, the largest mortgage investor in the country, has a bulging portfolio of houses acquired through foreclosures nationwide. About 31,000 of these properties are listed on its HomePath ( resale marketing site. To move them quickly out of inventory, Fannie temporarily is offering qualified owner-occupant purchasers — but not investors — cash incentives toward closing costs of 3.5% of the purchase price. But you have to submit your initial offer no later than March 31 and close by May 31.

So does Freddie Mac:

Freddie Mac, the other giant federal mortgage investor, also has thousands of foreclosed homes that it’s trying to dispose of — and its own First Look program — at its HomeSteps ( marketing site. Though Freddie currently has no closing cost incentive offer, it does provide a $500 allowance toward the purchase of a home warranty policy, and it promotes special mortgage financing options on houses in some areas. If you qualify, that could mean a loan with no mortgage insurance, no appraisal and a 5% maximum down payment.

Student Debt Hampering First-Time Buyers

You go to college, get a job, get a house. Right? Well not necessarily.

The growing student loan burden carried by millions of Americans threatens to undermine the housing recovery’s momentum by discouraging, or even blocking, a generation of potential buyers from purchasing their first homes.

The fear is that many young adults can no longer save for a down payment or qualify for a mortgage, impeding the housing market and the overall economy, which relies heavily on the housing sector for growth, regulators and mortgage industry experts said.

What is the Mortgage Credit Certificate Program?

Mortgage Credit Certificate (MCC)

Mortgage Credit CertificateMore popularly known as the MCC, a mortgage credit certificate is a taxpayer privilege in the US in which the local government issues the said certificate so that the taxpayer can claim tax returns for a part of the mortgage interest paid throughout the whole year. Think of it as a tax refund geared especially toward your mortgage. The premise of this first time home buyer program is for applicants to get a chance to qualify for a loan by giving them the opportunity to offset a part of their total mortgage interest. In short, this serves as some sort of additional monthly income which is used as proof of capacity to pay.

How Do You Qualify for a Mortgage Credit Certificate?

Not all taxpayers, however, qualify for MCC and there are a few criteria to consider if you are thinking of applying for one. Since it is a program meant for those buying a house for the first time, one is automatically disqualified if he has owned a home in the last three years. There is also a provision requiring potential beneficiaries to have a certain amount of fixed income, as well as the ability to meet purchase price restrictions. The new house in question should also be declared as the principal residence.

Most of these conditions are waived in time of great need such as after a devastating natural disaster. In any case, it still remains to be dependent on the decision of the local government involved.

How Do You Apply for a Mortgage Credit Certificate?

Everyone needs a helping hand, even more so those who would be purchasing a house for the very first time, and this helping hand could not come in any better form than that of financial aid. If you qualify for such a certificate, then by all means go and apply for it. By obtaining this certificate, you could expect to qualify for bigger loan amounts, which could translate to a larger first home, depending on what you want and need. If you’re interested in getting a mortgage credit certificate, you can ask for assistance from a reputable real estate agent in your area as most of them are knowledgeable about this.

Parker Colorado Metro Mortgage Assistance Plus Program

The Town of Parker is participating in the Metro Mortgage Assistance Plus Program. This Colorado first time home buyer program is a special grant for low and moderate-income individuals and families. Up to 4% of the loan is applied towards down payment and closing costs.

Loans Available for First Time Home Buyers

Loans Available for First Time Home Buyers

Young couples and people looking to purchase a home can sometimes find it more difficult because of student loans that have come due and because they are still relatively new in their career. There are many types of loans available to first time home buyers that can alleviate some of the pressure of having to come up with a large down payment. You can choose one of several loans that is geared towards the first time buyer. The advantages of a first time home buyers loan are:

* You can make a low down payment.
* Interest can be subsidized.
* You can avail of grants.
* Loan forgiveness.
* The fees that lenders charge are limited.
* You can choose deferred payment plans

Government Aid for First time Home Buyers

First time home buyers get excited when they find out they can get a loan with little to no money down. The Housing and Urban Development department supplies states with funds that can aid low to medium income home buyers with covering their closing costs on their first home. These loans for first time home owners can be $10,000 or more.

There are some loans that are forgiven when the home owner stays in his home for more than 3 years; there are also programs that offer a 10% discount on the price of the home. Most people who qualify for these loans are usually earning less than 80% of their region’s average income.

If you are looking for a particular loan, you can contact your state housing finance agency to find the loan that is right for you. Or you can get online and research home buyer loans for first time owners and come up with more than enough information to get you started.

There are places to go in your own community to help you find the right loans; all you have to do is know where to look. Churches and local organizations are great sources when it comes to finding the right loan for you.

There are many loans and grants to be had by the first time home buyer so it is better to take your time and research them well. There are rules to be followed and sometimes they can become irritating but what better price to pay when you are actually able to find free money for the purchase of your very first home.

Some grants make the potential owners take certain classes that can add up to several hours of class time. They are taught the basics about finding good lenders and learning their credit scores along with a lot of other information that proves to be helpful to first time home buyers. Doing it right the first time can save a lot of heartache in the end with a loan that goes south on you. Take the time to research and you will be one step ahead of the game.

Benefits For 1st Time Home Buyers

Looking for the first home can be an exciting time in the lives of many. However, it can also be a scary for time those who are concerned about the long-term commitment that they are making. Even the word mortgage can be viewed and translated into long-range goals and objectives, since many new homeowners are normally committed to a 30-year loan.

Although this long-term commitment can be major concern for many, buyers who purchase their first home can also associate this transaction with many different benefits. This is because first time buyers are normally given special incentives and there are inherent advantages in buying a home.

Some of the main benefits of buying the first home include financial stability, home equity, establishing strong credit, and saving money at tax time. Also, after working hard, the new homeowner will have an opportunity to participate in the American dream (owning a home).

Financial Stability

One benefit to buying a first home is having financial stability. The homeowner has more financial stability because they know the amount that they will have to pay each month for an extended period of time (i.e. 30 years). This is not true for those who pay rent each month because it can vary widely based on the economy and other things. The amount that a renter pays can also change in 6 months or in a year. The amount due is based on the current lease. However, if the homeowner has a fixed rate instead of an adjustable rate more, they will know the exact amount each month and they can plan their budgets accordingly.

Home Equity

One of the benefits of buying a home and paying the mortgage is building up equity. Equity can be described as ownership and it increases as the homeowner makes their mortgage payments. Some people consider it as savings because the money can be taken out when it is needed. This means, the homeowner is making money, while they are paying of their mortgage.

Strong Credit

Another benefit to buying the first home is rebuilding the crediting history and rating. While some buyers will have a high credit rating when they purchase their new home, others may have a low score. In these situations, the new home can build their rating quickly when they make payment on time every month. By paying the mortgage on time, creditors can review the history and view the owner as a positive risk. In fact, the new owner can watch their credit ratings increase by reviewing the three credit bureaus periodically.

Money Savings at Tax Time

When an individual rents instead of buys a home, they may have problems with finding tax credits and deductions at the end of the year. Without a home, many people owe the government instead of looking for a refund. However, when this same individual buys instead of rents, they will have additional tax savings at the end of the year. This is because the government allows deductions on the interest that is being paid.

How to Apply for First Time Home Buyers Mortgage

Getting a First Time Home Buyers Mortgage

A first time home buyer can find it easy to shop for a first time home buyers mortgage these days. You no longer have to struggle with traveling from place to place trying to find a loan. Applying for a loan online has made the process much easier and you can compare rates in your own spare time.

In a few simple steps, you will be able to find the perfect first time home buyers mortgage that will suit you and your financial needs by going online. Here are the steps you will want to take while trying to secure your first loan:

1. First select the terms of the first time home buyers mortgage.

The terms of your loan are going to have an effect on your payment and the interest rate. If you want to get the most value for your money, it is best to look for an adjustable rate loan. Your payments will start out low but will grow in time. If you want to stay within a steady budget, look for a first time home buyers mortgage that is set at a fixed rate as this will allow you to know exactly what you’re paying for the remainder of the loan. If you choose a loan that will be paid off in 15 years, you should know that the payments will be at least 1/3 higher than the average 30-year mortgage but you will be saving a substantial amount in final costs by cutting the interest considerably.

2. Know what first time home buyers mortgage you’re getting into.

Make sure you are clear about payback interest rates because a higher rate can have you spending thousands more in the long run.  If you want to buy a home and sell it off rather rapidly, you should look for a loan that offers lower closing costs. If you plan on staying in your home for several years then taking advantage of lower rates will be in your best interest.

3. Get your first time home buyers mortgage online.

You can get your loan started right online saving you the headache of running all over town to get to the first time home buyers mortgage lender. Even if you have not found the home of your choice, you can get pre-approved for a loan that will help you when it comes to placing your bid on a home. You can get all of your forms in the mail and the headache of finding the right loan has been greatly reduced.

Advice for the First Time Home Buyer

Buying your first home is a great time full of excitement and even fear. The process of buying your first home is unfamiliar and can be a bit intimidating. There are several mortgage loan programs available and it is important to know the difference between them before signing on the dotted line. You should also know what factors can increase or even decrease your chance of getting a great rate.

What is Your Bottom Line?

Many first time buyers end up purchasing a home that is out of their price range and they can’t afford it. Many people make the wrong assumption. Just because a loan is approved does not mean you can actually afford the monthly payments. Lenders do sometimes approve loans that are higher than what a buyer can afford because let’s face it, they make more money on these loans. You need to figure in cost of living, utilities, and emergencies.

Getting Pre-Qualified

When you are pre-qualified for a loan, the sellers know that you are probably going to be able to get the mortgage and make your home buying go smoother. You will also be able to know the price range of homes you should be looking at so you don’t waste your time on homes that are out of your price range. A pre-approval is still a loan that will have to be processed but it states that if your current situation has gone unchanged, you will be able to get the loan you apply for.

Get Your Credit Under Control

Make sure that any debts you have outstanding are paid for or at least under control before you start applying for loans. If you have a bad debt on your account, fix it before you begin. If you have a good credit history, you will be able to make a choice in loans. If you have poor credit, you may be stuck with the loan that is offered, high interest and all. Don’t skip payments and by all means pay off the smaller loans that can affect your score.

Select Your Mortgage Package

Your broker will have an idea on what loans you may qualify for. If you want to keep a little cash on hand, you should look for a loan with little to no down payment that will have to be handed over up front. Let your lender know what it is you are looking for and they will find you the best deal possible.