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The Arizona Housing Finance Authority is putting into effect a program to help first time homebuyers finance their first home purchase. This program is called the MRB Plus (The Mortgage Revenue Bond Plus) The MRB has a very attractive first mortgage interest rate and now it is even more interesting because it will help with 5% of the cost of the property that can be used to pay for the down payment –the part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage– or the closing costs –expenses over and above the price of the property incurred by buyers and sellers in transferring ownership of a property.
This 5% is granted on the condition that the buyer remains in the home and that it is their primary residence for 5 years. If the purchaser fails to occupy the home for 5 years, twenty percent of the grant is forgiven for each year the homebuyer lives in the home. Apart from the counties of Maricopa and Pima the MRB Plus is available in all areas of the State of Arizona.
The purpose of the MRB Plus is to provide financing for first time buyers who have a low or moderate income. The maximum annual household income limits at the date of writing this article range from $61,500 to $79,920 depending on the county. If the property is in a Targeted Area (an area where the state is encouraging people to go and live) or a non-targeted area (if the buyer belongs to a family of 2 or less or of 3 or more members). Household income includes the income of the borrower, his or her spouse and all who will live in the property who are 18 years of age or older. The maximum purchase price limit, at the date of writing, for single family homes in a non-targeted area are between $243,945 and $351,000 depending on the county and excluding Maricopa and Pima. To ensure that this program helps those who are really in need of assistance there are some requirements that need to be met to qualify for the aid.
To mention some:
– The borrower must not have owned a home for the last three years.
– Must contribute a minimum of $1000 of personal funds.
– Must agree to complete a homebuyer education class and be within the purchase price and income limits mentioned above.
The housing expense ratio (the percentage of gross monthly income that goes toward paying housing expenses) cannot exceed 31 to 43%.
– A Home warranty must be obtained and a professional inspection is to be done on the property.
These requirements guarantee that the State of Arizona helps citizens who are low or moderate income first home buyers. For further information contact the Arizona Housing Finance Authority.
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