SECTION 32 HOMEOWNERSHIP PROGRAM

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1 City of Phoenix Housing Dept. Jan2016 SECTION 32 HOMEOWNERSHIP PROGRAM - 20% OFF APPRAISED VALUE OF HOME - - NO MORE LANDLORDS - - POSSIBLE GRANTS FOR ADDITIONAL ASSISTANCE - STEP INTO HOMEOWNERSHIP! Congratulations! You ve already taken an important first step toward learning how you can become a homeowner. Planning and preparation are essential to successful homebuying. As a participant in the *Section 32 Program, we will guide you through each phase of the process. FOLLOW THESE STEPS: 1. Read through all of the program qualifications to determine if you are eligible to move forward with the process. 2. Contact a HUD approved Housing Counselor to schedule a meeting. 3. After you have met with a Housing Counselor, contact our City of Phoenix Homeownership Coordinator at to complete a Section 32 application. You Can Purchase Your Own Home! Subject to change when HUD publishes revised income limits. CITY OF PHOENIX SECTION 32 HOMEOWNERSHIP PROGRAM *Program subject to change without notice

2 City of Phoenix Housing Dept. Jan2016 Section 32 What is the Section 32? Section 32 is a homeownership program offered by the City of Phoenix Housing Department that provides low-income families and individuals an opportunity to purchase their first home. Eligible participants may receive down-payment and closing-cost assistance toward the purchase of a quality, affordable home. The Section 32 is offered to first-time homebuyers who are at or below 80% Area Median Income (AMI), and who will use the home as their primary residence. The purchase price will be the current (within 6 months of purchase) appraised value of the home. Eligible properties must pass a Housing Quality Standards (HQS) inspection. Homeownership, financial fitness and hands-on maintenance classes are provided and required. The City of Phoenix Housing Department offers a 20% discount of the appraised value in the form of a city loan, called the City Investment Loan. The City Investment Loan is a 10 year, no interest, no payment loan. During the term of the City Investment Loan the premises must be owned and occupied as the principal residence. Beginning on the sixth anniversary of the City Investment Loan, and each and every year thereafter, provided the premises are owned and occupied as the principal residence, 20% of the original principal balance of the City Investment Loan shall be forgiven on the date of each such anniversary. This schedule is established so that the indebtedness evidenced by this Note shall be fully forgiven on the tenth anniversary of the recording of the Deed of Trust on the premises. Contact: City of Phoenix Homeownership Coordinator The Section 32 is offered pursuant to plans, policies, and programs that may change at any time, without notice. The terms may change at any time. The presentation of properties on phoenix.gov and other marketing materials is a solicitation of interest in the program, and is not an offer to sell.

3 Section 32 Eligibility Requirements for Section 32 Participants All Applicants must: be a first time homebuyer. A first time homebuyer is defined as: An individual who has not had ownership in a principal residence during the 3 year period ending on the date of purchase of the property. A single parent who has only owned with a former spouse while married. An individual who is a displaced homemaker and has only owned with a spouse. meet requirement that annual household income does not exceed 80% of Median Income. (See AMI Table on phoenix.gov) pay a minimum of 3% of the purchase price as a down payment, of which 1% must be from purchaser s own funds. Borrower must have funds available to pay 1% of the appraisal value towards the down payment. This 1% from the borrower must be borrower s own resources and cannot be grants, gifts, contributions or similar amounts. This must be verified through documentation such as bank statements. qualify for a 15 to 30 year, fixed rate, amortizing conventional loan. No sub-prime loans allowed. obtain a letter of loan commitment. have a record of timely payments of rent and utilities. provide a favorable recommendation from current landlord. understand that all family members over 12 years of age must pass a criminal background check. agree to live in the home as his/her principal residence for a minimum of 5 years after closing. attend and complete required homeownership classes. attend and complete required financial fitness classes. complete pre-purchase one-on-one counseling with Community Housing Resource Agency (CHRA) or another nonprofit agency identified by the City of Phoenix Housing Department. meet HUD affordability requirements (mortgage principal and interest, plus insurance, real estate taxes, utilities, maintenance and other regular homeownership costs may not exceed 35% of adjusted gross family income) City of Phoenix Homeownership Coordinator, The Section 32 is offered pursuant to plans, policies, and programs that may change at any time, without notice. The terms may change at any time. The presentation of properties on phoenix.gov and other marketing materials is a solicitation of interest in the program, and is not an offer to sell.

4 Section 32 HUD Certified Housing Counseling Agencies Chicanos Por La Causa CPLC Housing Counseling Office 1402 S. Central Ave. Bldg A Phoenix, AZ Desert Mission Neighborhood Renewal 9229 N. Fourth St. Phoenix, AZ Greater Phoenix Urban League 1402 S. Seventh Ave. Phoenix, AZ Trellis (formerly Neighborhood Housing Services of Phoenix) 1405 E. McDowell Road, Suite 100 Phoenix, AZ Newtown Community Development Corp. 511 W. University Drive, Suite 4 Tempe, AZ Community Housing Resources of Arizona 4020 N. 20th St., Suite 220 Phoenix, AZ Offers one-on-one credit counseling. Does NOT offer homebuyer education Homeownership & Financial Education Classes Trellis (formerly Neighborhood Housing Services of Phoenix) 1405 E. McDowell Road, Suite 100 Phoenix, AZ Check website or call for class schedule Catholic Charities Community Services 4747 N. Seventh Avenue Phoenix, AZ Check website or call for class schedule City of Phoenix Housing Dept. Jan2016 City of Phoenix Homeownership Coordinator,

5 Subject to change when HUD publishes revised income limits.