The Housing Department administers down-payment and closing-cost assistance programs to promote and increase homeownership opportunities for Phoenix families throughout the city. Down payment and closing cost assistance is recognized across the country as the "necessary ingredient" to help low- and moderate-income families move to homeownership. Through The Open Doors Initiative Loan Program and the NSP Homebuyer Programs, eligible homebuyers are helped with the "gap" between the purchase price of a home and the maximum mortgage amount they can afford.
The City also offers home purchasing opportunities through the newly constructed Palomino homes described below or through the Section 32 Homeownership Program.
Finally, interested homebuyers can also go to the Neighborhood Services Department website to learn more about purchasing a foreclosed home that has already been remodeled or one in which the homebuyer wishes to coordinate the remodeling.
Be sure to review all of the homebuying programs to see what is best for you!
New Homes Available in the Palomino Community
In the north Phoenix area a small subdivision of affordable homes is offering down payment and closing cost assistance to eligible families. Through funding from the City of Phoenix, non-profit developer, Palomino Community Builders, built six homes for homeowners who meet certain low and moderate income requirements. This community of 6 homes is nestled into a very convenient Phoenix Palomino location near 26th Street, south of Bell Road. The homes are built around a common area in the center of the community. All homes feature a 2 car garage and 3 or 4 bedrooms. Five homes are still available for purchase. These are new homes that have never been lived in. Prices range from $99,900-119,900.
Qualifying families must have incomes below 80% area median income ($53,100 for a family of four), be credit worthy so that they can obtain a mortgage, be a first time home buyer and complete pre-purchase housing counseling from a city-approved counseling agency.
For more information about these homes and all eligibility requirements, contact Sue Goodrich at 480-556-7051 or send email to suegoodrich@cachethomes.net .
The Matthew Henson Homeownership (MHH)
The MHH Program provides a 0% interest, $8,500 loan to first time homebuyers (who have not owned a home in the last three years) and have an income below 80% of Area Median Income (for a family of 4, income could not exceed $53,100). The loan is forgiven after five years. The MHH loan can be combined with the Neighborhood Stabilization Program (NSP) Homeownership Assistance Program or NSP Move-In Ready Program. The home can be located anywhere within the City of Phoenix, and must pass a Housing Quality Standards Inspection. Buyers must provide a $1,000 down payment using their own funds (unless combined with NSP, in which case they must provide 50% of the required down payment), and take an eight-hour Homebuyer Education Class from a HUD approved Housing Counseling Agency. The buyer must use the home as his/her primary residence during the first five years of ownership. The first step is to contact Community Housing Resources of Arizona at 602-631-9780.
Matthew Henson Homeownership Fact Sheet