New Bond Funds become available.
Now that the tax credit has come and gone, the government is looking to keep the housing market afloat with some different funding. It comes in the form of a bond which will “give” 5% towards down payment or closing costs. The total grant is $25million and it is for all of Arizona except Maricopa or Pima counties. The 5% grant will be “gifted” and not repaid unless the house is sold or refinanced within 5 years.. The interest rate for the loan is 4.99%, the minimum credit score is 660 and the minimum amount of cash the borrower is required to bring to the deal is $1000.There is a recapture tax if three criteria are met – these are ,- the house sells for a profit, the income of the borrowers increases more than 5% per year and if the home is sold within 9 years. The borrower will need to be a first time home buyer and attend an online education class.
