Cottonwood Homeownership Program (CHP)

What is 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.

Do you have to pay it back?

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.

Who qualifies?

Cottonwood Homeownership Program (CHP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

Applications for Cottonwood Homeownership Program (CHP) 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 Housing Solutions of Northern Arizona.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application via Housing Solutions of Northern Arizona (housingnaz.org/prepurchase), 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.