Based on the right situation, the Arizona Mortgage Revenue Bond, can be a great niche product to help with that certain
homeowners who is needing some financial help with purchasing a home.  Even though their bond rate (4.99%) is not as
competitive as market rate, some of the benefits do outweigh the drawbacks.  Here are some of the criteria.

AZ Mortgage Revenue Bond Highlights
Down Payment assistance available up to 5% of the purchase price.  This can be used for down payment, and or closing costs
or a combination of both.

This is probably the biggest advantage to this program.  A secondary advantage is if you buy a home in a specific target area
the income is less restrictive.

Here are some of the drawbacks.  This program cannot be used in Pima or Maricopa County.  So it is primarily a great tool
to lend in rural housing communities.  The down payment assistance is not completely forgiven in the first 5 years.  It
drops 20% each year.  Rate is not as attractive.

Here are the basic requirements:  Product is used in conjunction with an FHA, VA and RD insured 30 year fixed rate products.

*Must be a first time homebuyer, plan to occupy as primary residence and not had prior ownership in the last three years
(certain census tracts located in various counties do not require applicants to be first time homebuyers while offering
higher income and sale price limits.)
* Borrower must contribute a minimum of $1,000.00 of personal funds
* Borrower cannot get any cash back or debt consolidation paid
* Borrower required to complete a home buyer education class
* Must meet program’s purchase price and income limits
* House payment/total payment to income ratios cannot exceed 31/43%
* Credit score for all borrowers must be at a 620 or above
* Independent professional inspection to be done on the property and obtain a home warranty
*Again this product will be a niche for that certain client.  Also understand that only 22 lenders in the entire state of
Arizona is set up to offer this product.  I like to share this because so many think there are not options anymore.  I
say find a mortgage lender who understands real options and will work with them.

Gary Miljour- Mortgage Lending for Tempe Arizona

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from mcbreo website: ” HUD’s $100 Down payment initiative will expire on July 31, 2010.  The $100 down payment was
for owner occupants (Any individual who purchases a HUD home as their primary residence for at least 12 months after
closing and who has not purchased a home from HUD as an owner occupant in the past twenty four months) purchasing a
HUD Home with FHA financing. This incentive will continue to be eligible for all contracts signed by seller by
July 31, 2010.  Contracts signed after the July 31,2010 deadline will not be eligible for the $100 Down payment incentive.”

This program was a good help to many buyers, and I am sad to see it disappear.  It seems like there are fewer and fewer
options for homeowners.

Gary Miljour- Mortgage Lending for Tempe Arizona

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Sunstreet Mortgage, LLC NMLS#145171

Gary Miljour Licensed Loan Originator NMLS#207208

Gary Miljour- Mortgage Lending for Tempe Arizona

Proceed with Confidence

Follow me: 

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Sunstreet Mortgage, LLC NMLS#145171

Gary Miljour Licensed Loan Originator NMLS#207208

Here is a comparison of the two loan products:

FHA:

• Down payment requirement: 3.5% down payment minimum.
• Requires financed upfront mortgage insurance premiums and monthly mortgage insurance premiums.
• FHA appraisal conditions required.
• No declining market conditions.
• Interest rates are extremely competitive.
• Minimum 620 credit scores with most investors.
• Primary residences only, no 2nd homes or investors.
• Financing available to FHA county loan limits.
• Eligible properties: FHA approved condos, single family homes, planned unit developments and manufactured housing.
• Seller concessions: 6% toward buyers closing costs and prepaid expenses.

Fannie Mae HomePath:

• Down payment requirement: 3% minimum on primary residences and 10% down minimum on 2nd homes and investment properties.
• Does not require any mortgage insurance premiums.
• No appraisal required, home must be Fannie Mae owned.
• No declining market conditions.
• Interest rates are less competitive.
• Pricing of the loan is less competitive.
• Minimum 660 credit score requirements.
• Primary residences, 2nd home or investors are eligible.
• Financing available to conforming loan limits.
• Eligible properties: Fannie Mae approved condos, single family homes, planned unit developments.
• Seller concessions: 6% for primary residences, 6% for 2nd homes and 2% for investors.

As illustrated, both of these loan products have benefits and drawbacks. For a typical homeowner planning to buy a home for their primary residence, FHA is by far a superior product allowing lower costs of the loan and payments. However, if you are looking for a great investment loan alternative, the HomePath product is an excellent fit.

The HomePath loan has much more flexibility with certain options, but could be challenging given the higher interest rates, cost of loans and minimum credit score requirements. These factors all depend on your specific financial needs.

If you have specific questions and need further advice, please feel free to call or email me. Every situation can be different.

Gary Miljour- Mortgage Lending for Tempe Arizona

Proceed with Confidence

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Sunstreet Mortgage, LLC NMLS#145171

Gary Miljour Licensed Loan Originator NMLS#207208

The USDA Rural Housing Program is another viable mortgage option to help clients with nothing down. 

Here are the Pros:  100% financing, Zero Down.  No monthly Mortgage Insurance, FHA Mortgage guidelines.

Here are the Con’s:  Home must be in a rural housing area.  This is all of Pinal County and parts of Maricopa County.  So Queen Creek is in place.  Some income restriction apply.

Again, I think the mortgage lender who has workable options to help clients get into homes will win the business at the end of the day. 

Please call me if you are looking for some of these options to discuss your unique situation.