City of Tucson Down Payment Assistance Program

What is City of Tucson Down Payment Assistance Program?

City of Tucson Down Payment Assistance Program is a deferred second loan for homebuyers in Tucson, Arizona.

• The City of Tucson Housing and Community Development Department offers a HOME-funded Down Payment Assistance Program to help income-qualified homebuyers purchase a primary residence within the City of Tucson and Pima County (excluding Tribal lands). Assistance is structured as a deferred-payment second mortgage with no monthly payments, secured by a deed of trust. Loans are subject to a HOME affordability period during which the principal and interest become due if the home is sold or transferred. Maximum assistance is the lesser of $50,000 or 20% of contract sales price, determined by household need and affordability.
• Deferred-payment second mortgage of up to $50,000 or 20% of contract sales price (whichever is less) to assist with down payment and closing costs. No monthly payments during the affordability period. Assistance amount determined by household need and affordability gap analysis.
• Funding comes from HOME, Federal, and Local Government.

How much assistance does it provide?

City of Tucson Down Payment Assistance Program provides assistance worth 20% of the purchase price, as set by the program.

• Buyer contribution: Minimum $1,000 of buyer's own funds (documented and verified). Cost of home inspection and home warranty purchase may count toward this requirement.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

City of Tucson Down Payment Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, transfer, refinance (without subordination), or loss of owner-occupancy during the affordability period triggers repayment of principal plus accrued interest.
• The assistance is recorded in 2nd position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Tucson Down Payment Assistance Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

City of Tucson Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income must be at or below 80% HUD Area Median Income (AMI) for Tucson. Current limits per official program page: 1-person $55,900; 2-person $63,900; 3-person $71,900; 4-person $79,850; 5-person $86,250; 6-person $92,650; 7-person $99,050; 8-person $105,450.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Tucson Down Payment Assistance Program caps the purchase price at $345,000.

• Eligible property types include Single-family detached homes, townhomes, condominiums, new construction, and existing homes meeting HUD Housing Quality Standards.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

City of Tucson Down Payment Assistance Program serves buyers purchasing in Tucson, Arizona.

How do you apply?

Applications for City of Tucson Down Payment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Administration of Resources and Choices (ARC) - (520) 623-9383, www.arc-az.org; Chicanos Por La Causa (CPLC) - (520) 882-0018, www.cplc.org/housing; Pima County Community Land Trust - (520) 603-0587, www.pcclt.org; Primavera Foundation - (520) 882-5383, www.primavera.org.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Applications submitted through partner counseling agencies after completing HUD-certified homebuyer counseling and securing a purchase contract; first-come, first-served subject to funding availability., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.