Family Housing Resources - FHR Mortgage Loan Program

Family Housing Resources has made available a mortgage loan program for homebuyers living in all cities and counties in Arizona. The FHR Loan Program has assisted many low and middle-income families’ purchase homes all across Arizona since 1999. This unique mortgage loan program is attractive to potential homebuyers, because it provides the flexibility to buy a home anywhere in the state and is open to all potential homebuyers who meet certain income limits. Best of all, once you qualify for a mortgage loan through a participating lender, the loan program offers generous downpayment and closing cost assistance.

Eligible Borrowers
The FHR Loan Program is for borrowers throughout Arizona who meet the income guidelines listed below. The income limits are significantly higher for borrowers who purchase a home in a Target Area. Target Areas are defined by census tracts and identified by the federal government for purposes of increasing homeownership. In order to obtain this loan, homebuyers must work with a participating lender who can also advise you which neighborhoods fall within the census tracts. Borrowers do not need to be first-time homebuyers for this loan program.

Income Limits Statewide
Maximum Current Annual Family Income Limits – Non-Target Area	$67,660
Maximum Current Annual Family Income Limits – Target Area **	$112,767

Purchase Price Limits: The FHA or VA loans limits in the county where you are purchasing. Contact a participating lender to find out what the FHA or VA loan limits are in your areas.

Features of the FHR Mortgage Loan
The FHR Mortgage Loan is funded by taxable mortgage revenue bonds issued by Family Housing Resources. To apply for this loan, contact a participating lender in your community. Other features of the loan include:
         :: 30-year, fixed-rate mortgage financing
         :: Eligible loan types: FHA or VA
         :: Lender fees are reasonable and customary

Downpayment Assistance
The FHR mortgage loan provides homebuyers with downpayment and closing cost assistance equal to 5% of the loan amount. For example, if the first mortgage is $100,000, the borrower is eligible for $5,000 as a second mortgage. This assistance is described as a soft second mortgage or forgivable second mortgage that has the following features:

:: The borrower is not required to pay any monthly interest or payments.

:: The soft second mortgage is completely forgiven if the homebuyer occupies their home as a principal residence and does not refinance the first mortgage within 10 years.

:: Beginning in year six and each year thereafter, 20% of the second mortgage is forgiven. By year ten, the second mortgage is completely forgiven.

:: Homebuyers who refinance or sell their homes within the ten-year period will be required to pay back the portion of the loan required at that time.

How Do I Apply?
Interested borrowers must contact a participating lender. Borrowers should direct all questions about their loan application to a participating lender.