Home in Five Advantage

Home in Five Advantage is a forgivable loan for homebuyers in Phoenix, Arizona, administered by Industrial Development Authority of the City of Phoenix and Industrial Development Authority of the County of Maricopa (Phoenix IDA / Maricopa County IDA). Home in Five Advantage is a down payment assistance program from the Phoenix IDA and Maricopa County IDA helping low- and moderate-income buyers purchase a home in Maricopa County, Arizona. Buyers obtain a 30-year fixed-rate FHA, VA, or HFA conventional first mortgage plus a down payment/closing-cost second mortgage of up to 6 percent, offered as a 3-, 7-, 10-, or 30-year second depending on loan type. The program has assisted more than 25,000 homebuyers since 2012. Up to 6 percent down payment and closing cost assistance. Interest-free forgivable second mortgage options (3, 7, or 30 years). No purchase price limit. No first-time homebuyer requirement (except the 7-year option). 30-year fixed-rate FHA/VA/conventional first mortgage. 120-plus participating lenders. Funding comes from Phoenix IDA and Maricopa County IDA (mortgage revenue bond / HFA program).

Home in Five Advantage is forgiven after 3 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, or refinance before the end of the forgiveness term (36 months for the 3-year, 84 months for the 7-year, 360 months for the 30-year forgivable second). The 3- and 7-year seconds forgive pro-rata monthly; the 30-year forgives only at final maturity. The 10-year second is amortizing with monthly P&I at 6 percent interest. The assistance is recorded in Second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Home in Five Advantage is open to homebuyers who will live in the home as their primary residence. On credit, the program states: Minimum FICO credit score of 640. A homebuyer education course is required, through 8-hour homebuyer education course through an approved Arizona housing counseling agency. Approved online providers include ARC, Take Charge America, CPLC, Money Management International, Newtown CDC, and Trellis. Residency requirement: Buyer must occupy the home as principal residence within 60 days of closing. The 7-year forgivable second requires AZ residency for at least 6 months. The DPA second cannot be subordinated or assumed. 1 percent origination fee plus customary closing costs due at closing. The 7-year forgivable second (including the Arizona is Home component) requires first-time homebuyer status, AZ residency 6-plus months, and income at or below 120 percent AMI ($131,520). The 10-year amortizing second is a repayable loan with monthly P&I at 6 percent. A companion program, Home in Five Platinum, is administered separately via eHousingPlus. GAP: annual funding cap, reservation system mechanics, federal MRB recapture status, max first-mortgage amount, and max liquid assets not published on the primary site.

Home in Five Advantage limits household income to $153,440. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Home in Five Advantage caps the purchase price as follows: No purchase price limit. Eligible property types include Single Family, Condo, Townhouse, and PUD. New construction is eligible.

Home in Five Advantage serves homebuyers purchasing in Phoenix, Arizona.

Applications for Home in Five Advantage go through Industrial Development Authority of the City of Phoenix and Industrial Development Authority of the County of Maricopa (Phoenix IDA / Maricopa County IDA), which publishes the current terms and the application steps on its own site. 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.