City of Phoenix First Time Homebuyer Programs Have Low Foreclosure Rates

City of Phoenix first time homebuyer programs have a foreclosure rate of less than one percent compared to the regional average of 6.6 percent.

First time homebuyers experience a high rate of foreclosures due to a lack of understanding of mortgage products and how to manage the cost of a mortgage within their household budget.

“The city of Phoenix first time homebuyer programs provide pre-purchase counseling, conservative debt ratios and a 30-year fixed mortgage,” said Councilman Tom Simplot, Neighborhoods, Housing, Historic Preservation, Arts and Culture subcommittee chairman. “Our program requirements ensure that our first-time homebuyers receive the best mortgage product for which they qualify.”

The city of Phoenix Housing Department provides numerous opportunities for first-time homebuyers through federally-funded HOME programs and the Home in 5 program offered by the Phoenix and Maricopa Industrial Development authorities.

“For more than 10 years, the city’s Housing Department has provided down payment and closing cost assistance,” said Kim Dorney, city of Phoenix Housing Department director. “We have helped hundreds of moderate-income families purchase their first home.”

The Home in 5 Program, offered through a partnership with the Phoenix and Maricopa County Industrial Development authorities since 2001, has a cumulative rate of foreclosure of .67 percent. This program provides down payment and closing cost assistance and mortgages to 2,400 families with incomes up to 115 percent of the median income ($74,203 for a family of three or more).

For more information about the city’s first-time homebuyer programs visit phoenix.gov/housing.