Cottonwood Homeownership Program (CHP)

Cottonwood Homeownership Program (CHP) is a deferred second loan for homebuyers in Cottonwood, Arizona. The City of Cottonwood's flagship workforce homeownership assistance program, administered by Housing Solutions of Northern Arizona. Provides a 3:1 city match (up to $15,000) of buyer-contributed funds toward down payment and closing costs for low-to-moderate-income households employed within the City of Cottonwood and purchasing a primary residence in the Verde Valley. The program is designed to increase homeownership rates among the local workforce and to revitalize and stabilize the Cottonwood community. Up to $15,000 in down payment / closing cost assistance for low-to-moderate income households employed within the City of Cottonwood, structured as a 3:1 match of the buyer's contribution. First-time Verde Valley homebuyers can receive up to $40,000 in total combined assistance when stacked with companion programs. Funding comes from Local Government.

Cottonwood Homeownership Program (CHP) 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 with cash-out, or loss of owner-occupancy and repaid via equity-share / shared-appreciation formula. The assistance is recorded in 2 position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Cottonwood Homeownership Program (CHP) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: Mortgage-eligible based on credit and employment (no published minimum score). A homebuyer education course is required, through Housing Solutions of Northern Arizona. Residency requirement: Must be employed within the City of Cottonwood; must purchase home in the Verde Valley (approved zip codes). Citizenship or immigration status: U.S. citizen or eligible non-citizen (per mortgage requirements). Buyer must be employed within the City of Cottonwood; household must be low-to-moderate income (income table $87,150 - $134,550 per program PDF, scaled by household size). Mandatory homebuyer counseling through Housing Solutions of Northern Arizona. Home must be a primary residence located within the Verde Valley (per approved zip codes). City of Cottonwood is repaid via an equity-share / shared-appreciation formula upon sale, transfer, refinance with cash-out, or loss of owner-occupancy. Contact: Angela Koder, HSNA Housing Program Manager (928-214-7456 / angelak@housingnaz.org).

Cottonwood Homeownership Program (CHP) limits household income to 120% of the area median income, which varies by county and household size. Household income $87,150 - $134,550 per the CHP brochure income table; roughly aligned with 80%-120% AMI for Yavapai County, scaled by household size. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Cottonwood Homeownership Program (CHP) caps the purchase price as follows: No published maximum purchase price. Eligible property types include Single-family detached, Townhome, and Condominium. New construction is eligible.

Cottonwood Homeownership Program (CHP) serves homebuyers purchasing in Cottonwood, Arizona.

Applications for Cottonwood Homeownership Program (CHP) go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application via Housing Solutions of Northern Arizona (housingnaz.org/prepurchase). Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.