County ignoring home loan program ; Area first-time buyers missing out on government loan assistance

By David Bell

Today's News-Herald

LAKE HAVASU CITY - A state program to assist first-time homebuyers in the rural areas is getting very little play in Mohave County.

The Arizona Department of Housing reports only eight homes in Mohave County have been financed using the Mortgage Revenue Loan Program since 2004.

The program makes below market-interest-rate loans available to first-time homebuyers outside Maricopa and Pima counties.

“Yuma, Coconino and Pinal counties have been participating more than others,” said Carl Kinney, program administrator with Arizona Housing Finance Authority. “Housing prices and availability may also be playing a factor.”

About $25 million in low-interest loans became available in February and another $19 million is expected sometime this summer.

There are three programs operated by the Arizona Housing Finance Authority - the mortgage revenue bond program, the mortgage credit certificate program and the down-payment assistance program.

For all three programs, a first-time homebuyer is someone who has never owned a home or hasn't owned a home within the last three years.

Under the mortgage-revenue bond program, the state agency issues bonds in order to secure lower interest rates for the buyer.

As of March 2, that rate was 5.8 percent for 30-year, fixed-rate loans, about a half-percent below market.

Loan types are limited to FHA, VA and certain FNMA conventional loans and there are income and home value limits.

A two-person family can have an income of no more than $59,100 to qualify and families of three more can earn a maximum of $67,965 annually. The purchase price of the home can be no more than $289,657.

The mortgage credit certificate program gives first-time homebuyers a one-for-one tax credit for up to 20 percent of the interest they pay in the first year.

Meaning on a $100,000 loan at a 5 percent interest rate, the buyer would receive a credit of $1,000. That credit can be used by the lender to help the buyer qualify for the loan as an income source as well.

For down payment assistance, the funds come through federal Department of Housing and Urban Development or the state housing fund. If the buyer's income falls below 80 percent of the area median income they can qualify for assistance on virtually any type of 30-year, fixed-rate loan.

If the buyer's income is more than 80 percent of the area median income but they qualify for one of the other two programs, they can receive up to 5 percent down-payment assistance.

“We try to help as many people as possible,” said ADH spokesperson Megan Medina.

All approved lenders for Mohave County are located in Lake Havasu City.

They include GMAC Mortgage, Home 1-2-3 Mortgage, Next Gen Lending Inc. and Wells Fargo Home Mortgage.

The Housing Authority was established by the Legislature in 2001 to oversee housing programs in the rural counties of the state. The first homes were financed in 2004. Since then, 435 first-time homebuyers have received assistance.

For more information, check the Web site at http://www.housingaz.com/homes/default.asp