Home in Five Advantage

What is 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).

How much assistance does it provide?

Home in Five Advantage provides assistance worth 6% of the purchase price, as set by the program.

• Award tiers: FHA and VA loans: 3, 4, 5, or 6 percent DPA with a 3-year forgivable second; 3-6 percent with a 7-year forgivable second; 3-6 percent with a 10-year amortizing second (6 percent interest). Conventional (Fannie Mae HFA Preferred / Freddie Mac HFA Advantage): 0, 3, 4, or 5 percent with a 30-year forgivable second; 3-6 percent with a 7-year forgivable second; 3-6 percent with a 10-year amortizing second. The 7-year forgivable second requires first-time homebuyer status, AZ residency 6-plus months, and income at or below 120 percent AMI (currently $131,520).
• Amounts are the program's published maximums, not an offer — Industrial Development Authority of the City of Phoenix and Industrial Development Authority of the County of Maricopa (Phoenix IDA / Maricopa County IDA) determines any individual award.

Do you have to pay it back?

Home in Five Advantage is forgiven after 3 years, so a buyer 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.

Who qualifies?

Home in Five Advantage is open to buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, 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..

2. 2

   Contact Industrial Development Authority of the City of Phoenix and Industrial Development Authority of the County of Maricopa (Phoenix IDA / Maricopa County IDA) to reserve funds

   Funds are reserved with the provider 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.