| In Arizona, the real estate market has been hit by the | | | | Your Way Home AZ loan 22%: $22,000 |
| real estate bubble. We all know that the 5 worst | | | | Down Payment 3%: $3,000 |
| states hit by the real estate disaster are: Florida, | | | | The homeowner would then make payments on the |
| California, Nevada, Arizona and Michigan. These 5 | | | | 75% loan, the Your Way Home AZ loan doesn't not |
| states have created a very strong buyer's market, | | | | have payments, the only stipulation is if you sell before |
| home prices have become very affordable. | | | | the forgivable time period, you must pay the loan back. |
| As a real estate broker, I am constantly helping buyers | | | | Otherwise at the allocated time frame, the loan is |
| find their home, whether it be a starter home, dream | | | | forgiven. Can you even think about 22% of your home |
| home or empty nester home. However, I do not have | | | | as free? |
| much control over the loan process. I can suggest a | | | | Below are the list of qualifications, eligible properties |
| few mortgage companies, but ultimately the buyer | | | | and loan terms. |
| decides how much they want to pay and with whom | | | | Qualifications for YOUR WAY HOME AZ |
| they will work. However, the theme with buyer's is the | | | | 1. Household income must have a gross income of no |
| same, they want to pay as little as possible for their | | | | more than 120% of the average median household |
| home. | | | | income for the county. I.e. Maricopa County: Median |
| There is a new Arizona Program, Your Way Home | | | | income range of $56,040 (1 person household) - |
| AZ, it is part of the larger NSP (Neighborhood | | | | $105,600 (8 or more person household) |
| Stabilization Program) created to stabilize the housing | | | | 2. If you own a residence- you must be leasing your |
| market. This is much needed, there are far too many | | | | primary residence for at least 12 months prior to |
| lender owned properties, these were foreclosed by | | | | applying. |
| the Lender because the homeowner was no longer | | | | 3. You must use a lender from the ADOH Participating |
| able to make payments on their home loan. This | | | | Lender list. |
| leaves many neighborhoods looking run down due to | | | | 4. Homeowner must complete an 8 hour Homebuyer |
| vacant homes not being maintained with overgrown | | | | Education Class. |
| yards and green swimming pools. | | | | 5. The property purchased must be a primary |
| The basic premise of Your Way Home AZ is 22% of | | | | residence |
| your loan is subsidized by the Federal government to | | | | 6. Homeowner must have a maximum debt to income |
| stabilize the real estate markets most damaged by | | | | ratio of 31/43 |
| the real estate boom and thus, crash. The home | | | | 7. You must have 2 months of payments as reserves. |
| purchased must be a foreclosed property and in livable | | | | Eligible Properties |
| conditions. This 22% loan has zero percent interest | | | | Foreclosed properties only |
| and no monthly payments. The loan is then forgivable | | | | One unit detached single family homes, condos |
| after either a 5, 10 or 15 year time period. This program | | | | and townhomes |
| creates the expectation that the homeowner will stay | | | | Property must be vacant at time of listing |
| in the home for many years to have the loan forgiven, | | | | Property must be listed in a risk-rated zip code |
| thus owing 22% less on their home. | | | | Loan Terms |
| Example: | | | | 22 percent of purchase price |
| Home costs: $100,000 | | | | All loans are forgivable after a period of time |
| First loan 75%: $75,000 | | | | based on the amount of the loan. |