Family Housing Resources - Pima IDA Mortgage Loan

5.99% (5.89% FOR VETERANS) 30 YEAR FIXED RATE MORTGAGE LOANS WITH A SECOND LOAN FOR DOWN PAYMENT AND CLOSING COSTS!!

The Industrial Development Authorities of Pima County and the City of Tucson have joined together to provide a mortgage loan program for homebuyers in Pima County. This program offers a second loan for downpayment and closing costs assistance up to 7% of the first lien loan amount.

[In place of the second loan, borrowers meeting certain low-income criteria may qualify to receive up to $10,000 in down payment assistance (click here) from FHR The borrower may not earn more than 80 % of median income. The assistance is in the form of a second lien, forgivable in 10 years. Contact FHR at 318-0093 for more information.]

Eligible Borrowers
The IDA Mortgage Loan program serves low to moderate income homebuyers. To qualify for this program you must meet the income limits established by Pima County. Borrowers must be first-time homebuyers unless the home being purchased is in a Target Area. Target Areas are defined by census tracts and identified by the federal government for purposes of increasing homeownership. You qualify as a first-time homebuyer if you who have not had ownership interest in a primary residence for the past three years.

In order to obtain this loan, homebuyers must work with a participating lender who can also advise you which neighborhoods fall within the Target Areas.

Income Limits
Pima County	Income Limit
1-2 Persons (Non-Targeted)	$59,285
3 or more Persons (Non-Targeted)	$68,177
1-2 Persons (Targeted)	$65,880
3 or more Persons (Targeted)	$76,860

Purchase Price Limits:
$284,033 for Pima County. For homebuyers purchasing in Target Areas, the purchase price limit is $347,151.

Features of the IDA Mortgage Loan
The IDA Mortgage Loan is funded by tax-exempt mortgage revenue bonds issued by the Industrial Development Authority of Pima County and the City of Tucson. To apply for this loan, contact a participating lender. Other features of the loan include:
         :: 30-year, fixed-rate mortgage financing
         :: Eligible loan types: Conventional, FHA, VA or USDA
         :: Lender fees are reasonable and customary

Downpayment Assistance
The IDA Mortgage Loan also offers homebuyers a second loan for downpayment and closing costs. The second loan can total up to 7% of the first mortgage loan; it has a 7% interest rate fixed for 30 years. Homebuyers must occupy their new homes as their principal residence.

In place of the second loan, borrowers meeting certain low-income criteria may qualify to receive up to $10,000 in down payment assistance from FHR. The borrower may not earn more than 80 % of median income. The assistance is in the form of a second lien, forgivable in 10 years. Contact FHR at 318-0093 for more information.

Recapture Tax
Because the loan is funded by tax-exempt mortgage revenue bonds, homebuyers obtaining the IDA Mortgage Loan program could have to share with the Federal government a portion of the gain on the sale on the residence if the home is sold in the first nine years and the homebuyer realizes a net gain and experiences a significant increase in their income. The maximum potential recapture tax begins decreasing in year five, and is eliminated altogether after year nine. Click here to view a copy of the recapture guidelines.

How Do I Apply?
Interested borrowers may contact a participating lender. BE SURE TO TELL THE LENDER THAT YOU ARE INTERESTED IN THE BOND LOAN. Borrowers should direct all questions about their loan application to a participating lender.

Participating Lenders 2008 MRB (updated 2/22/07)