First Time Home Buyers
The First Time Homebuyers Program through TMM is designed to assist low-income homebuyers with the purchase of an affordable first home. The following guidelines are provided to assist TMM’s clients, mortgage companies, banks, realtors and other community members in understanding TMM’s First Time Homebuyers Program and to engage all parties in developing an affordable home purchase package.
See Class Schedule at the end of the page for details on classes for the First Time Home Buyers Program.
Click below for forms:
FIRST TIME HOMEBUYER PROGRAM (FTHB) GUIDELINES
- All potential first time homebuyers must have a gross annual income equal to or less than the following:
|NUMBER OF PERSONS||EQUAL TO OR LESS THAN:|
- Applicants must have a minimum of $24,000 annual income. However, TMM will assist applicants earning more than 50% of the published AMI (area median income) based on family size if the applicant is pursuing the purchase of a home through the Pima County Community Land Trust (PCCLT).
- Land Trust homebuyers are now also able to qualify with income up to 80% AMI as shown above. All Buyers must have a minimum of $1,000 contribution towards their home. These funds may be gifted but not borrowed. Gifted funds from a Seller or loan product must not cause the sales price or the mortgage to be increased. Buyers must also have an amount equal to a one month housing payment in their bank account at closing (as shown on their most current bank statement). The homebuyer contribution for a Pima County Community Land Trust home is $1,500 and the funds may not be gifted or borrowed.
- Buyers utilizing City and County HOME funds must meet the HUD definition of first time homebuyer, which is defined as a household who has not owned a home in the last three years or a household that has been displaced.
- The first time homebuyer requirement does not apply to Community Land Trust buyers. However, the Land Trust home must be the buyer’s primary residence and must be occupied by buyer at least 11 months of the year.
- Buyers may not have liquid cash assets exceeding $10,000.
- The homebuyer must not owe any amounts to the City of Tucson for Section 8 or Public Housing.
- Once contact has been made with our Housing staff, it can take a minimum of 45 days to complete the entire process.
- A home investment is an important step and we want to be sure our Homebuyers are informed and well represented.
- All eligible participants must complete nine (9) hours of TMM homebuyer education and complete pre-purchase counseling with TMM staff to make sure they meet federal guidelines for the program.
- Loan must be in accordance with all loan parameters set forth below.
Homebuyer Assistance Parameters
- TMM continues to provide counseling and education for first time homebuyers who purchase property located within the city/county. Call TMM for specific program funds available.
- City/County HOME funds assistance is 3.5% of the purchase price of the purchase property (including MRB purchase transactions).
- Loan can be with any lender. No sub-prime loans are allowed.
- Land Trust buyers must use program lender, currently BBVA Compass.
- No interest only or ARM loans are allowed.
- The interest rate on the loan must reflect par pricing (A-paper market rate).
- Maximum of 1% origination fee will be allowed.
- Buy downs may be allowed if the borrower or seller is contributing the funds
- Lender fees may not exceed $1,000.00, excluding credit report and appraisal fee No co-signers are allowed.
- The purchase of the home shall be subject to the following:
- Purchase price shall not exceed $175,000.
- PITI of the homebuyer, divided by gross income, shall not exceed 35%.
- Total debt of the homebuyer shall not exceed 45%.
- The home must be located within the City of Tucson or Pima County.
- The home must be owner-occupied or vacant, unless the homebuyer is currently renting the home to be purchased.
- The assisted homebuyer must occupy the home as current residence during the lien period. Homebuyers cannot have another property in their name.
- For HOME downpayment assistance, TMM will arrange for a home inspection to be completed at no cost to the buyer. The home to be purchased must be inspected by a County Certified Home Inspector.
- Purchase properties utilizing HOME downpayment funds must meet Federal (HUD) and local Housing Quality Standards. Items identified by the inspector as not meeting these standards must be repaired prior to closing and provision of homebuyer assistance.
- All homes must meet required environmental standards involving lead-based paint and flood plane.
- Downpayment assistance is also subject to Environmental Review approval by the City of Tucson for HOME funds.
- For Pima County Community Land Trust homes, buyers will pay for their own home inspections and for any other inspections they deem necessary.
In order to provide the First Time Homebuyer program, TMM may charge an application fee as set forth below.
- $25.00 application fee will be required at the time of the applicant’s interview
- No fees for homebuyer education classes with TMM are required.
If you have any questions about this information, please contact Tresina Lister, Director of Housing Development at (520) 322-9557.
TMM’s First Time Homebuyer Education Program
Pre-Purchase and Post-Purchase Education
Understanding The Home Buying Process
- May 8, 2013 5:00 pm -9:00 pm
- June 8, 2013 9:00 am – 1:00 pm
Resolving Credit and Debt Issues
- May 11, 2013 9:00 am – 1:00 pm
- June 12, 2013 5:00 pm -9:00 pm
All Tucson classes are free of charge and open to the public.
To register for any of these classes, please call the office at (520) 322-9557 or REGISTER ONLINE HERE.
All classes are held on the main campus. TMM is located at 1550 N. Country Club Road in Tucson. For more information contact Tresina Lister at TMM Family Services, Inc. (520) 322-9557