State program offers incentive for buying foreclosures

First time homebuyers across the state recently got a 22 percent incentive to buy foreclosed homes with the launching of a state-operated, federally-funded housing program.

The Your Way Home AZ, made possible by $20 million in funds from the federal stimulus bill, provides up to 22 percent of a home’s cost in a forgivable zero interest, zero payments loan.

“The 22 percent is a loan that is forgiven after the buyer lives in the place of residence for five to 15 years,” said Kristina Fretwell, spokesperson for the program.

To qualify, a potential buyer’s income cannot exceed 120 percent of the area median and the debt to income ratio cannot exceed 31 percent.

In Maricopa the income level limitation is $79,000 for a family of four. “This program is a good option to help someone get into a home,” Fretwell said.

In addition to the income limitations, buyers must cover three percent of the home’s cost, with a minimum of one percent coming out of pocket. They must also attend an eight-hour homebuyer counseling class.

Once these criteria are met, the potential buyers are still required to secure a lender from a list provided by the organization (www.yourwayhomeaz.com/lenders.aspx), and the home that is purchased must be sold for a minimum of five percent under the appraised value.

For more information on the program visit www.yourwayhomeaz.com.

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