First-time homebuyers can get a lot of help from federal, city and state governments. Here are some programs to look into:
Federal grants. The U.S. Department of Housing and Urban Development (HUD) has a Homes and Communities Program that offers grants—free money—that qualified first-time homebuyers can use to pay closing costs and down payments. Find a complete list of federal grants by visiting grants.gov.
FHA-backed loans come with down payments as low as 3 percent, plus most of your closing costs and fees can be included in the loan. Visit the HUD Web site for more information to get advice from a specialist.
Good Neighbor Next Door program. If you’re a police officer, school teacher, firefighter or emergency medical technician, you could qualify for a 50 percent discount on your home through a program that makes FHA-insured, foreclosed homes available in “revitalization areas” in your community. You’ll have to meet income requirements and agree to live in the home for three years, and the homes are sold in “as-is” condition. (You don’t have to be a first-time homebuyer to qualify for this program, but you may not have owned another home for the past year.) Click here for a listing of homes that could be available to you.
Homes for Arizonans Program. The Arizona Department of Housing offers counseling, low-interest mortgages, and down payment and closing cost assistance to qualified first-time homebuyers. Visit the Homes for Arizonans Web site for more information.
Home in Five. The city of Phoenix and Maricopa County help first-time homebuyers obtain FHA, VA and other loans to buy homes in the county. The program helps qualified buyers get a fixed, 30-year mortgage at a competitive rate and pitches in 5 percent assistance for down payment and closing costs. Click here to learn if you can qualify.
First-time HOMEbuyers Program. The city of Phoenix offers 4 percent interest rate financing and down payment and closing cost assistance to buyers earning below 60 percent of the area’s median income. The homes must be in Phoenix and need at least $5,000 in repairs. Click here to learn more.
Scottsdale First-Time Homebuyer’s Program. This federally funded program helps first-timers with counseling and down payment and closing cost assistance u to $35,000, depending on need and income. Find out if you qualify by clicking here.
Tucson Down-Payment Assistance program. Through a federal program, the city of Tucson and Pima County are offering first-time homebuyers up to $10,000 toward down payments. Visit Tucson’s Web site for more information.
Other programs for affordable housing (not just for first-timers):
Habitat for Humanity. Your family will have to work for your Habitat for Humanity Home by investing at least 400 hours of labor into building your home or homes for others. Qualified families buy the homes, which are built with donated money and materials and sold at no profit, with no-interest loans. These homes are reserved for families that demonstrate a need for adequate and affordable housing.
Self-help housing loans from the Rural Housing Programs of the U.S. Department of Agriculture. The loans help groups of six to 10 low-income families build their own homes by providing materials and skilled labor they can’t furnish themselves. The families must agree to work together until all homes are finished. Click here for more information.
