There is a new program to the City of Phoenix that will provide
assistance for a homebuyer to purchase a foreclosed property from banks. This program works like other municipal bond programs. The money is used for down payment, and closing costs assistance.
The borrower will need to contact one of the 4 counseling partners
listed on the attached document to get preapproved for the 15K as well as schedule the class that is required.
This program is a great tool to help more buyers take advantage of the current market prices.
A few items of note:
- The qualification for the 15K is independent of the qualification of
the mortgage. Keep in mind that the City may underwrite their loan
differently than we underwrite. - There are strict income guidelines (to qualify for the 15K) that are
in the attached document. - The city money is dependent upon the sales price being 15% lower than appraised value.
- Property must be a foreclosed property and located in the City of
Phoenix. - This is an interest free loan that will be paid back to the City of
Phoenix upon refinance or sale of the property. - Borrower must bring 1K of money to close the transaction.
Below are more details about the City of Phoenix Neighborhood Stabilization Program and a Buying Distressed Property. Click on the “zoom in” magnify glass icon to get a better view.
Make It Happen!
Kendall Matthews
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