Financing in Scottsdale>Question Details

Leyla, Home Buyer in Scottsdale, AZ

Does anyone know about the cons of the Arizona 1% Down Payment Home Buyers Solutions Gift Program?

Asked by Leyla, Scottsdale, AZ Tue Feb 8, 2011

Help the community by answering this question:

Answers

6
The only con is that nothing is free in life, so you will pay more in interest or loan costs for the lower down payment. Your best options it to ask for a quote from one or more lenders offering this program. Let me know if you need some names.
0 votes Thank Flag Link Tue Feb 8, 2011
Leyla,
There really are no major cons, just some limitations. It really is a pretty good program. I would consult with Sandy Krestan at Nova Home Loans at 602-820-5166. After speaking to her, the program is up to 2.5% Gift is given to a Homebuyer using an FHA Loan. The 2.5% Gift comes from an approved 501 - 3 ( C ) non - profit charity.
You do not have to re-pay the gift money.
0 votes Thank Flag Link Tue Feb 8, 2011
Here is some info for you;

Up to 2.5% Gift is given to a Homebuyer using an FHA Loan. The 2.5% Gift comes from an approved 501 - 3 ( C ) non - profit charity. There is No Obligation to Repay the Gift. Easy to Qualify !!





Quick Reference How Program Works

1) Available in Arizona and other States.

2) 1% Down from Borrower can be Gifted from a Blood Relative, making this a Zero down FHA Loan. (call for details)

3) No Obligation to repay Gift Money, because it is a Gift.

4) Only with FHA loans 30 year fixed, no pre payment penaltys.

5) 1 to 4 unit Family homes & Condos too.

6) Minimum FICO 640 all borrowers.

7) Seller can pay 6% of buyers closing cost.

8) co-signers OK.

Hope this helps,

john.werner@realestate.com
0 votes Thank Flag Link Tue Feb 8, 2011
From my understanding it is typically a 1% - 2% Greater rate for the down payment assistance program.

So that is your new FHA with 3.5 down will be 5% with the assistance it will be at least 6& if not 7% and if you plan to sell your home within 4 years you are going to be saving money but if you will be holding on to it for longer you will be paying more for interest rates. We have a great partner that handles those types of programs if you would like to be connected with them please feel free to let me know.

Sincerely,

Andrew Bloom
Re/Max Excalibur
480-346-5460 - Office
0 votes Thank Flag Link Tue Feb 8, 2011
Leyla,

That would depend on your particular situation as to your needs for that type of financing.

In general though the understanding is that it]s a low down payment but a higher interest rate.

It also is dependent on the seller making a contribution towards your closing costs.

There are homes available in the Phoenix Metro area offered by Fannie Mae, Freddie Mac an dHUD that offer similar types of benefits.

Fannie Mae's program is Homepath financing. http://www.homepath.com/financing/index.html

Freddie Mac offers Home Possible

http://www.freddiemac.com/homepossible/

Visit HUD.gov and seek out the financing programs they offer for 1st time or owner occupied buyers.
You can contact any of these Folks and ask questions about different HUD mortgage programs for assistance.

http://www.hud.gov/local/az/community/home/#state

Let me know if there is anything else I can help you with,

Stew Keene - Home Smart Realty
480-220-7491
Web Reference: http://www.stewkeene.com
0 votes Thank Flag Link Tue Feb 8, 2011
Typically they have higher rates on those programs.
0 votes Thank Flag Link Tue Feb 8, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer