Pathway to Purchase, a loan program for Arizonans who want to be homeowners, was recently introduced by the Arizona Housing Department and the Arizona Home Foreclosure Prevention Funding Corporation.
The program was created in response to increasing rent prices and the challenges many Arizonans are facing when they seek to purchase a home.
The program will provide a 30-year fixed-rate mortgage, including down payment assistance and a second mortgage of up to 10 percent of the overall purchase price of the home with a maximum of $20,000 on the second mortgage. It will be an option for individuals with a yearly household income of under $89,088 for homes under $356,352.
The second mortgage can be put toward either the closing cost or the down payment, granting the soon-to-be homeowners with more flexibility in their search for home.
The program benefits are available to individuals who are seeking residency in Arizona City, Avondale, Buckeye, Casa Grande, Coolidge, Douglas, El Mirage, Fort Mohave, Goodyear, Huachuca City, Laveen, Maricopa, Red Rock, Sierra Vista, Snowflake and Yuma. The funds for second mortgages will be offered to those who respond to the offer the fastest.
Funding for the second mortgage portion of the program will come from the U.S. Department of Treasury's Hardest Hit Fund, which will allocate $48 million with help from the Arizona Home Foreclosure Prevention Funding Corporation.