City of Phoenix Section 32 Public Housing Homeownership Program

City of Phoenix Section 32 Public Housing Homeownership Program is a forgivable loan for homebuyers in Phoenix, Arizona, administered by City of Phoenix Housing Department. The Section 32 Public Housing Homeownership Program lets eligible first-time buyers at or below 80% AMI purchase former City of Phoenix public housing units at a 20% discount off appraised value, structured as a 10-year, zero-interest, no-payment City Investment Loan that forgives at 20%/year beginning year 6. Buyers must qualify for a conventional first mortgage and complete homeownership, financial fitness, and maintenance classes. 20% discount off appraised value via City Investment Loan. Zero-interest, no-payment loan for 10 years. Forgiveness from year 6 (20%/year). Possible additional DPA/closing-cost grants. One-year home warranty. Counseling support.

City of Phoenix Section 32 Public Housing Homeownership Program is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, change in primary occupancy, or failure to maintain principal residence during the 10-year City Investment Loan term. 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.

City of Phoenix Section 32 Public Housing Homeownership Program 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: 640+; below 640 may qualify after completing Financial Fitness classes. A homebuyer education course is required, through City of Phoenix Housing Dept certified counselors; HUD-approved housing counseling agencies. Citizenship or immigration status: U.S. citizen or eligible non-citizen (HUD public housing rules apply). Applicant must be a public housing resident OR on the public housing waiting list. Favorable landlord recommendation and timely payment history required. HQS inspection required. Financial fitness classes if credit < 640. 75% of income must be earned. Distinct from Home in Five Advantage and CPLC Open Doors.

City of Phoenix Section 32 Public Housing Homeownership Program limits household income to 80% of the area median income, which varies by county and household size. Household income <= 80% AMI by household size; at least 75% of monthly income must be earned income. The limit applies to total household income, not only the borrower&rsquo;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.

City of Phoenix Section 32 Public Housing Homeownership Program can be used for Single Family. New construction is not eligible. Manufactured homes are not eligible.

City of Phoenix Section 32 Public Housing Homeownership Program serves homebuyers purchasing in Phoenix, Arizona.

Applications for City of Phoenix Section 32 Public Housing Homeownership Program go through City of Phoenix Housing Department, 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.