Learn About…

USDA Loans and more.

Home Buyer Down Payment and Closing Costs Assistance Program

How does it work?!

Administered by the Arizona Industrial Development Authority (Arizona IDA), a nonprofit corporation and political subdivision of the State of Arizona, the HOME+PLUS Home Buyer Down Payment Assistance Program provides a fixed-rate mortgage combined with down payment assistance (DPA) ranging from 0% – 5% depending upon the new underlying first mortgage. This program is self-funded and without the assistance of taxpayer funds. The DPA can be used toward the down payment, closing costs, or a combination of the two.  The DPA is only available in conjunction with a HOME+PLUS mortgage.

Here are some of the following terms/conditions of this loan:

  1. Three-year, no interest, no payment, deferred soft second mortgage, forgiven monthly at a rate of 1/36 over the term of the lien.
  2. The DPA second mortgage is fully forgiven after the 36th month (3-years).
  3. The homeowner can choose to refinance or sell their HOME PLUS first mortgage at any time, however, if a refinance or sale occurs in the first 36 months, the DPA 2nd lien would need to be paid (note amount less the number of forgiven months from closing date).
  4. AzIDA does not subordinate or provide exceptions to the DPA repayment terms.
  5. Home Plus has a home buyer education requirement that must be met by taking a course during the loan process. The course completion certificate is good for one year and must be completed prior to closing.
  6. Debt-to-Income Ratio and Credit Score are taken into account. (Please ask your Loan Officer what these requirements look like.)

Common Questions and Answers:

Can a buyer use DPA funds to bridge the gap when the purchase price is greater than the appraised value? Is it allowed? How would it work?

Yes. It will, however, require the buyer to contribute some of their own funds. For more info, ask your Academy Mortgage Loan Officer.

Do I have to buy from a specific list of eligible homes?

No. The Home Plus program allows home buyers to buy either new OR existing single-family, townhomes, condos, manufactured homes, and 2-unit properties throughout the state. Currently, 3-4 unit properties are not eligible.

Is mortgage insurance required?

If the new underlying first mortgage is a Fannie Mae or Freddie Mac mortgage, with less than 20% down, yes mortgage insurance is required. On the Fannie and Freddie products, the charter minimum mortgage insurance coverage is much lower than mortgage insurance coverage outside of the Home Plus program. Your lender should be able to provide you interest rate and mortgage payment (including mortgage insurance) comparisons between the Home Plus program options and a standard mortgage in which you provide the down payment and closing costs. You can then determine your best course of action.

My credit score is below the program minimum, what can I do now?

  If your credit score falls below the minimum program requirements you are not currently eligible for the Home Plus program. Call us today to schedule an appointment! (928) 247-9089.

How do I apply for the HOME+PLUS Down Payment Assistance Program?

The Home Plus program does not require a direct application from the home buyer. All you have to do is select your Loan Officer of choice to see if you qualify! 

Is this a big government, taxpayer funded program?

The Home Plus program is a true public / private sector partnership. We raise funds in the national capital markets and form partnerships with lending institutions to deliver the Home Plus program throughout the State. NO taxpayer funds are used for the Home Plus program.

My elderly parent lives with us and collects social security. Is this income counted against the program income limit?

The Home Plus income limit is based on “borrower” income, not “household” income. If your parent will be a borrower on the new underlying first mortgage, the income is counted. If your parent will NOT be a borrower on the new underlying first mortgage, the income is NOT counted.

Do I need to shop different HOME+PLUS approved mortgage lenders for the best interest rate?

The interest rates for the respective new underlying first mortgages are set by the Home Plus program and are the same regardless of which program-approved participating mortgage lender you use. Expertise in down payment assistance can vary by Loan Officer. Luckily, here at Academy Mortgage Yuma, we are very educated on this loan program, and are ready to help!

Why can’t my mortgage lender lock my interest rate immediately?

Great question. The Loan Officer has ten days from the interest rate lock date to finalize ALL aspects of the new underlying first mortgage. If the mortgage is not within ten days of completion, the interest rate lock should not occur. It is the lender’s responsibility to manage each stage of the Home Plus process and to communicate and coordinate with the homebuyer and Realtor accordingly.

Academy Mortgage Yuma
Name(Required)
This field is for validation purposes and should be left unchanged.

Brian Aungst

Loan Officer

NMLS: 2031470

State Lic: LO-1038828

PHONE: (928) 514-1592

Rosa Castillo

Senior Loan Officer

NMLS# 799138

State Lic: LO-0944489

PHONE: (928)920-2831

PHONE: (928) 247-9089

Academy Mortgage Yuma - Robert Wright

Robert Wright

Loan Officer

NMLS# 1989817

State Lic: LO-1012538

PHONE: (928) 247-9089 X33917

PHONE: (928) 366-1637

Brenda Hurtado

Loan Officer

NMLS: 2333849

State Lic: LO-1039337

PHONE: (928) 304-3183

Ray Ochoa

Senior Loan Officer

NMLS 214114

State Lic: AZ LO-0915882, TN 238287

PHONE: (928)246-5937

PHONE: (928) 247-9089

Corey Seward

Corey Seward

Loan Officer

NMLS: 2137785

State Lic: LO-1026723

PHONE: (928) 247-9089 x33935

Bill Craft

Sales Manager

NMLS 1621885

State Lic: LO-0942496

PHONE: (928)366-1639

PHONE: (928) 247-9089

Derek Egeberg

Branch Manager

NMLS 180899

State Lic: AZ LO-0915245, TN 236104

PHONE: (928)246-0422

PHONE: (928) 247-9089

I’m Ready to Talk to a Loan Officer.

Name(Required)
This field is for validation purposes and should be left unchanged.