City Of Phoenix Down Payment Assistance

• Located in the City of Phoenix
• Foreclosed and have changed title
• Appraised within 60 days of the purchase contract
• Purchase contract must contain four contingencies:
• Sales price at least 15 percent below appraised value
• Property clear of the city’s top eight neighborhood code violations
• Pass inspection according to HQS before close of escrow
• Signed “Lead Disclosure Form” from seller for properties built pre-Jan.1, 1978

Program Description

The NSP Homeownership Assistance program consists of three phases – each with very specific
requirements:

Homebuyer Education and Credit Assessment

• Complete eight hours of counseling from a HUD-certified housing counselor
• Receive a Certificate of Completion from the HUD-certified counselor
• Qualify for a 30-year, fixed rate, amortizing loan (not subprime)

Eligibility Verification

As part of the Housing and Economic Recovery Act passed by Congress in July 2008, $3.92
billion was provided to communities hardest hit by residential foreclosures and mortgage
delinquencies. The city of Phoenix received $39,478,000 in Neighborhood Stabilization Program
funds to help families purchase foreclosed homes at a discount, which in turn helps stabilize
neighborhoods. Homeownership Assistance funds are for down payment and closing cost
assistance for eligible homebuyers.

Enhanced Home Buyer Credit

Here are a few details about H.R. 1 the American Recovery And Reinvestment Act Of 2009, also known as the Enhanced Home Buyer Credit.

If you buy a home that closes after January of this year, but before November 30, 2009, you may be able to get ten percent of the purchase price up to a maximum of $8,000 for a single resident or a married couple filing jointly. The program is for First-time home buyers. This really means that you have not owned a home for three preceding three years. Plus, it is only available to U.S. Citizens.

No investors. This program is only for principal residences. Purchases of vacation homes and rental property are not eligible.

Unlike lasts years plan, the repayment requirements do not apply to purchases made between 01/01/2009 and 11/30/2009, unless the taxpayer sells the property within three years.

The credit is phased-out based on the buyer’s modified adjusted gross income (income). Income is your adjusted gross income plus various amounts excluded from income—for example, certain foreign income, health and flexible spending accounts and 401K contributions. For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000.

This means the full credit is available for married couples filing a joint return whose income is $150,000 or less and for other taxpayers whose income is $75,000 or less.

The tax credit reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar. It is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.

This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.