PHOENIX — Arizona Governor Katie Hobbs announced on July 17 that 100 middle-class families have closed on new homes through "Arizona Is Home," a down payment assistance program from the Arizona Department of Housing (ADOH) for first-time buyers.
The $13 million program, which was announced in April, aims to increase homeownership across the state. It is expected to assist 500 homebuyers statewide who are either low- to moderate-income or purchasing a house for the first time.
"I was born and raised in an Arizona where a middle-class family could buy their own home. That should be the reality for the next generation, too," Hobbs said in a news release dated July 17. "The cost of housing is too high, and I'm proud to deliver this important help to build a more affordable Arizona."
The mortgage assistance program uses funding from the U.S. Department of Housing and Urban Development's (HUD) Housing Trust Fund and the American Rescue Plan Act to provide financial support through three existing lending organizations: Arizona Industrial Development Authority (Arizona IDA), Trellis, and Chicanos Por La Causa (CPLC).
To be eligible, first-time homebuyers in Arizona at or below 80% of the Area Median Income (AMI) can receive up to $30,000, while those between 81% and 120% of AMI can receive up to $20,000, according to ADOH.
Patricia Duarte, executive vice president of homeownership initiatives at CPLC, said approximately '10 families have already benefited from the program' since April. The average loan size is $280,000, with an interest rate of 6.5%.
"Chicanos Por La Causa, Inc. is delighted to help low- to moderate-income and first-time homebuyers with resources," Duarte said. "Even in challenging housing markets, the reality of homeownership is possible when down payment and interest rate reduction options are available."
Rural Arizona
In all Arizona counties except Pima and Maricopa, the Arizona Is Home program offers first-time homebuyers below-market 30-year fixed interest rates combined with 0% to 4% down payment and closing cost assistance, according to Dirk Swift, executive director of the Arizona Industrial Development Authority.
"Our target is borrowers at or below 80% of the area AMI,” Swift said. "As of my last update, we had closed 74 transactions under the Arizona Is Home program. The average loan size is about $270,000."
Swift emphasized the Arizona IDA's decade-long involvement in providing down payment assistance statewide, reiterating his commitment to supporting rural homebuyers.
"First-time homebuyers across Arizona face unprecedented challenges, and those in rural communities often face even greater obstacles. The Arizona Is Home program is designed to address these challenges, providing assistance and creating pathways to homeownership."
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