Loan Qualifications

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Secure Your Loan With Helpful Guidance

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The loan used to purchase a foreclosed home must meet qualifications set by the lender, as well as criteria set by the city of Phoenix in order to participate in the NSP program.

Since each lender has different guidelines and each buyer's situation is unique, the NSP program offers customized guidance.  

For example:  

    • The lender will determine whether you (the buyer) qualify for a first mortgage loan and if so, will issue a conditional loan approval
    • The housing counselor will calculate your household income, help you evaluate your loan terms and credit report, and provide guidance on the financial responsibilities of owning a home
    • The down payment loan administrator will evaluate your eligibility based on your readiness to purchase and fair and reasonable loan terms, in addition to verifying the property you selected and that the household income meets the NSP criteria.

 

In general, some of the lending standards they will review are to ensure that you:

    • Have a good credit history
    • Have reserve funds and a bank account
    • Have a history of steady income
    • Are current on your state and federal taxes
    • Do not have excessive debt

 

The city of Phoenix has its own financial qualifications, which may go beyond your lender's standards. In addition to meeting NSP household income limits, the city requires that:

    • First-mortgage ratios must be 31 percent / 43 percent aligned with Federal
      Housing Administration (FHA) standard guidelines
    • First-mortgage terms are 15- or 30-year fixed-rate, fully amortizing
    • The homebuyer only needs to contribute 50% of the required down payment
      or a minimum of $1,000 (whichever is greater) from personal funds
    • The loan amount must comply with FHA mortgage limits for one
      unit
    • NSP funds will be secured by a promissory note and deed of
      trust and will be paid directly to the title company  
    • Any excess funds will be applied to the principle of the first mortgage

 

NSP Customer Advisory Services will guide you through the process and explain all requirements in more detail.

Call today to learn more at 602-262-6602 or by e-mail at nsphome@phoenix.gov