- Buyers must have a minimum FICO credit score of 640 for FHA, VA or USDA-RD and a 680 for Conventional loans.
- Maximum credit qualifying income may not exceed $88,340 for ALL borrowers.
- Maximum 45% Debt to Income (DTI) Ratio
- Standard loan guidelines apply (i.e., adequate income, acceptable credit, and down payment requirement).
- Must attend an 8-hour homebuyer education course through a HUD Approved Housing Counseling Agency located within Arizona, and obtain a certificate of completion. The homebuyer education course may be face-to-face or on-line.
- It is strongly recommended that homebuyers obtain a home inspection prior to close of escrow and/or a home warranty.
- Buyers must occupy the home as their principal residence within 60 days of closing.
- Home can be located anywhere in Maricopa County (including the city of Phoenix)
- Must be for the purchase of a home (i.e., no refinancing).
- Maximum purchase price is $300,000.
- Eligible homes include new or existing homes, condominiums, or townhouses. Manufactured homes are not eligible.
Home in 5 Program—VA Loan:
Today I wanted to talk with you about the VA Loan Home in 5 Program. Veterans and Active Duty Military are purchasing homes at the rapid rate. That said, I am seeing more and more military families taking advantage of this booming housing market here in Maricopa County AZ which is fantastic. With a booming market however, getting our offers accepted is getting tougher and tougher, with multiple offers coming in on homes and in many cases leaving Veterans seeking seeking home frustrated and unable to win the bid.
As many Veterans may have heard in the past one of the things that makes our VA Home Loan so competitive is the fact that it does not require a down payment. However, one of the things that I have observed in the past is at times some of buyers may view closing costs, and pre-paid items costs as a barrier to home ownership. So naturally they ask the seller to pay for them. Keep in mind that by asking the seller to pay theses costs in a competitive marketplace, like Maricopa County, can make our VA Loan offer appear less attractive to the seller promoting them to accept an offer other than ours.
So what’s the solution you ask? I believe it’s the VA Loan Home in 5 Program which allows a Veteran to get as much as a 4.5% grant towards down payment, closing costs, and pre-paid items. Why is this important? It’s important because it literally can allow a Veteran to take advantage of a VA Loan with no down payment, and no out of pocket expenses! Yes, I said it… No down payment and no out of pocket expenses!
So if you are in the market to purchase a home you owe to yourself to check out this program to see if it’s the right fit for you. Keep in mind that we as Veterans must qualify for this loan. There are credit score requirements as well as income requirements so it’s important to ensure you are qualified before we start looking at homes.
Home in 5 Advantage Eligibility is available in the following areas/cities
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