STEP INTO HOMEOWNERSHIP!Congratulations! You’ve already taken an important first step toward learning how you can become a homeowner. Planning and preparation are essential to successful homebuying. As a participant in the *Section 32 Program, we will guide you through each phase of the process.

FOLLOW THESE STEPS:1. Read through all of the program qualifications to determine if you are eligible to

move forward with the process.

2. Contact a HUD approved Housing Counselor to schedule a meeting.

3. After you have met with a Housing Counselor, contact our City of Phoenix Homeownership Coordinator at 602-534-4584 to complete a Section 32 application.

- 20% OFF APPRAISED VALUE OF HOME -- NO MORE LANDLORDS -

- POSSIBLE GRANTS FOR ADDITIONAL ASSISTANCE -

You Can Purchase

Your Own Home!

SECTION 32HOMEOWNERSHIP PROGRAM

CITY OF PHOENIX SECTION 32 HOMEOWNERSHIP PROGRAMKEYS TO OPPORTUNITY | STABILITY | FREEDOM

Subject to change when HUD publishes revised income limits.

*Program subject to change without notice

City of Phoenix Housing Dept. Jan2016

Section 32 is a homeownership program offered by the City of Phoenix Housing Department that provides low-income families and individuals an opportunity to purchase their first home. Eligible participants may receive down-payment and closing-cost assistance toward the purchase of a quality, affordable home.

The Section 32 Homeownership Program is offered to first-time homebuyers who are at or below 80% Area Median Income (AMI), and who will use the home as their primary residence. The purchase price will be the current (within 6 months of purchase) appraised value of the home. Eligible properties must pass a Housing Quality Standards (HQS) inspection. Homeownership, financial fitness and hands-on maintenance classes are provided and required.

The City of Phoenix Housing Department offers a 20% discount of the appraised value in the form of a city loan, called the City Investment Loan. The City Investment Loan is a 10 year, no interest, no payment loan. During the term of the City Investment Loan the premises must be owned and occupied as the principal residence. Beginning on the sixth anniversary of the City Investment Loan, and each and every year thereafter, provided the premises are owned and occupied as the principal residence, 20% of the original principal balance of the City Investment Loan shall be forgiven on the date of each such anniversary. This schedule is established so that the indebtedness evidenced by this Note shall be fully forgiven on the tenth anniversary of the recording of the Deed of Trust on the premises.

What is the Section 32 Homeownership Program?

Section 32 Homeownership ProgramKEYS TO OPPORTUNITY | STABILITY | FREEDOM

Contact:City of Phoenix Homeownership Coordinator602-534-4584

City of Phoenix Housing Dept. Jan2016

The Section 32 Homeownership Program is offered pursuant to plans, policies, and programs that may change at any time, without notice. The terms may change at any time. The presentation of properties on phoenix.gov and other marketing materials is a solicitation of interest in the program, and is not an offer to sell.

All Applicants must:• be a first time homebuyer. A first time homebuyer is defined as:

» An individual who has not had ownership in a principal residence during the 3 year period ending on the date of purchase of the property. » A single parent who has only owned with a former spouse while married. » An individual who is a displaced homemaker and has only owned with a spouse.

• meet requirement that annual household income does not exceed 80% of Median Income. (See AMI Table on phoenix.gov)

• pay a minimum of 3% of the purchase price as a down payment, of which 1% must be from purchaser’s own funds.

» Borrower must have funds available to pay 1% of the appraisal value towards the down payment. This 1% from the borrower must be borrower’s own resources and cannot be grants, gifts, contributions or similar amounts. This must be verified through documentation such as bank statements.

• qualify for a 15 to 30 year, fixed rate, amortizing conventional loan. No sub-prime loans allowed.• obtain a letter of loan commitment.• have a record of timely payments of rent and utilities.• provide a favorable recommendation from current landlord.• understand that all family members over 12 years of age must pass a criminal background check.• agree to live in the home as his/her principal residence for a minimum of 5 years after closing.• attend and complete required homeownership classes.• attend and complete required financial fitness classes.• complete pre-purchase one-on-one counseling with Community Housing Resource Agency

(CHRA) or another nonprofit agency identified by the City of Phoenix Housing Department.• meet HUD affordability requirements (mortgage principal and interest, plus insurance, real

estate taxes, utilities, maintenance and other regular homeownership costs may not exceed 35% of adjusted gross family income)

Eligibility Requirements for Section 32 Participants

Section 32 Homeownership ProgramKEYS TO OPPORTUNITY | STABILITY | FREEDOM

City of Phoenix Homeownership Coordinator, 602-534-4584

The Section 32 Homeownership Program is offered pursuant to plans, policies, and programs that may change at any time, without notice. The terms may change at any time. The presentation of properties on phoenix.gov and other marketing materials is a solicitation of interest in the program, and is not an offer to sell.

Chicanos Por La CausaCPLC Housing Counseling Office1402 S. Central Ave. Bldg APhoenix, AZ 85004www.cplc.org602-253-0838Hours: 8 a.m. to 5 p.m. M-FCheck website for monthly classes

Desert Mission Neighborhood Renewal9229 N. Fourth St. Phoenix, AZ 85020www.desertmission.com602-331-5833Hours: 8 a.m. to 5 p.m. M-FCheck website for monthly classes

Greater Phoenix Urban League1402 S. Seventh Ave. Phoenix, AZ 85007www.gphxul.org602-254-5611Hours: 8 a.m. to 5 p.m. M-FCheck website for monthly classes

Trellis (formerly Neighborhood Housing Services of Phoenix)1405 E. McDowell Road, Suite 100Phoenix, AZ 85006www.trellisaz.org602-258-1659Hours: 8 a.m. to 5 p.m. M-FCheck website for monthly classes

Newtown Community Development Corp.511 W. University Drive, Suite 4Tempe, AZ 85281www.newtowncdc.org480-517-1589Hours: 8 a.m. to 5 p.m. M-FCheck website for monthly classes

Community Housing Resources of Arizona4020 N. 20th St., Suite 220Phoenix, AZ 85016www.communityhousingresources.org602-631-9780Hours: 8 a.m. to 5 p.m. M-FOffers one-on-one credit counseling. Does NOT offer homebuyer educationCheck website for monthly classes

Trellis (formerly Neighborhood Housing Services of Phoenix)1405 E. McDowell Road, Suite 100Phoenix, AZ 85006www.trellisaz.org602-258-1659Check website or call for class schedule

Catholic Charities Community Services4747 N. Seventh AvenuePhoenix, AZ 85013www.catholiccharitiesaz.org602.285.1999Check website or call for class schedule

Section 32 Homeownership ProgramKEYS TO OPPORTUNITY | STABILITY | FREEDOM

HUD Certified Housing Counseling Agencies

Homeownership & Financial Education Classes

City of Phoenix Housing Dept. Jan2016

City of Phoenix Homeownership Coordinator, 602-534-4584

Subject to change when HUD publishes revised income limits.