Pima County/City of Tucson 2017 Down Payment Assistance Program (DPA) Fact Sheet I. Homebuyer Eligibility Criteria

a. Homebuyer must meet the following established HUD Area Median Income (AMI) limits of 80%, which are subject to change, for the family sizes given below (effective 06/12/17):

Family Size Income Limit Family Size Income Limit 1 $33,250.00 5 $51,250.00 2 $38,000.00 6 $55,050.00 3 $42,750.00 7 $58,850.00 4 $47,450.00 8 $62,650.00

b. Homebuyer must agree to occupy property as principal residence during affordability period (5 years).

c. Homebuyer must complete HUD Certified Homebuyer Counseling at one of the participating agencies prior to executing the home purchase contract.

d. Homebuyer must qualify for a mortgage loan that meets established program standards; No adjustable rate mortgages (ARM) are permitted; mortgage terms must be reviewed and approved by the housing counselor at one of the participating agencies listed.

e. Homebuyers may not have cash assets exceeding $ 10,000.00.

f. Homebuyer must contribute a minimum of *$1,000.00 of his/her own funds (must be documented and verified) towards the home.

g. Homebuyer must have the equivalent of one month’s mortgage payment in reserves on deposit at the bank.

h. Debt to income ratios apply as follows: (household income must show ability to support mortgage payment including all additional debt): maximum housing debt/income ratio shall not exceed 31%; minimum housing debt/income ratio shall not drop below 18%; maximum total debt/income ration shall not exceed 45%. *Any ratio above 31% (35% max) must have compensating factors documented and supported and must be approved by City/County.

II. Property Eligibility Criteria

a. Prior to approval of home purchase contract, properties must be approved by City/County for compliance with federal environmental standards.

b. Homes purchased must be inspected by a program approved home inspector and must meet HUD’s minimum housing quality standards. *Home inspection may be used towards the Buyer’s Contribution requirement of $1,000.

c. Homes constructed prior to 1978, must be inspected for defective paint and lead conditions.

d. Maximum purchase price for existing homes is $152,000; new constructed homes $224,000.

III. Down Payment Assistance (DPA) Loan Criteria a. DPA limited to 3.5% of contract sales price or $3,700 (whichever is less). b. DPA loan terms; no monthly payments required. c. If home purchased is sold or transferred during first 5 years, DPA principal amount loaned is due.

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