Programs to help first-time homebuyers

Buying a home can mean paying thousands of dollars for a down payment and other expenses. Fortunately, there are programs for first-time homebuyers available to help reduce expenses. If you’re exploring the idea of owning a home, this guide is here to help!

Buying a home is exciting, but between the down payment, closing costs and other expenses, excitement can quickly turn to anxiety. The good news is that there are programs available for homebuyers to alleviate that anxiety and help make these expenses more manageable.

To help you navigate your choices, we’ve outlined some of the most common down payment programs available to help first-time and other qualifying homebuyers.

Desert Financial’s First-Time Homebuyer Program

Our First-Time Homebuyer Program¹ was made for members who have not owned a home in the last three years. In the program, you’ll get exclusive benefits like:

• No down payment
• Fixed and variable rates available
• No area median income limits
• Competitive rates
• Closing cost credit (up to $7,500) through the Home Plus Program²
• Local servicing of your loan³

If you have questions about purchasing your first home, credit score requirements or how to get more information about our First-Time Homebuyer Program, attend a workshop or webinar or schedule an appointment! You’ll get all the answers you need to start your homebuying journey.

Community Heroes First-Time Homebuyer Program

The heroes in our community give everything to help us grow, protect us from harm and fight for our right to chase our goals. That’s why they get mortgage perks that help them get into the house of their dreams. The Community Heroes First-Time Homebuyer Program is designed for:

• Education workers
• Military members
• Medical workers
• First responders
• Government/civil servants

These lifesavers and difference makers can get all the perks of the First-Time Homebuyer Program, plus no private mortgage insurance (PMI) requirement.

PMI is traditionally required on mortgages with a down payment of less than 20% of the home’s purchase price. It’s also meant to protect the lender if the borrower can’t make a mortgage payment. So it can increase the monthly cost of owning a home without offering any practical benefit to the borrower.

Fannie Mae’s HomeReady^® Mortgage Program⁴

This program makes homeownership a possibility for low- and middle-income Arizonans by offering down-payment options as low as 3% on conventional loans. Ideal borrowers include:

• Low-income borrowers
• First-time or repeat homebuyers
• Those with limited cash for down payment
• Those looking to purchase OR refinance
• Potential homeowners with a credit score above 620. This limit is revised annually.

Freddie Mac’s Home Possible^® Program⁵

Very similar to Fannie Mae’s program, the Home Possible program also gives homebuyers the ability to put as little as 3% down. It offers credit flexibilities for low-to-moderate income borrowers. Ideal borrowers include:

• Borrowers desiring a low-down-payment solution with flexible sources of funds
• Very low- to low-income borrowers
• First-time homebuyers, move-up borrowers and retirees

FHA Loans⁶

The Federal Housing Administration (FHA) loan program approves borrowers with lower credit scores and accepts down payments below standard requirements.

Eligibility requirements:

• Proof of employment and a steady income
• A valid Social Security number
• U.S. residence
• FICO credit score of at least 580
• Down payment of at least 3.5% if the score is above 580
• A debt-to-income ratio of less than 43%
• The home must be the buyer’s primary residence
• Buyer must move in within 60 days of closing
• Can only be used on a home that meets FHA appraisal requirements

VA Loans⁷

U.S. Department of Veterans Affairs (VA) loans are exclusively for homebuyers who serve or have served in the military. VA loans typically do not require a down payment or private mortgage insurance (PMI) and have competitively low interest rates and limited closing costs.

USDA Loans⁸

United States Department of Agriculture (USDA) loans are available on homes located in suburban or rural areas and can be available for qualified homebuyers with 100% financing.

Move in with more confidence

Buying a home is a complicated and expensive process, but you don’t have to go it alone. At Desert Financial, our highly qualified and caring mortgage loan officers will help you find the loan that fits your finances and needs the best. Whether it’s an FHA, VA, USDA or conventional loan, we are here to help you every step of the way to becoming a homeowner.