FLAGSTAFF HOMEBUYER ASSISTANCE PROGRAM

(FHAP) 
Purpose of the program

The Flagstaff Homebuyer Assistance Program, provided by Northern Arizona Council of Governments (NACOG), provides down payment and closing cost assistance to low-to-moderate income families who wish to purchase homes within the City of Flagstaff limits.
 
How much can the program help me?
  • Families may be eligible to receive down payment subsidy up to 10% of the purchase price of the home secured by a Promissory Note and Deed of Trust.
  • Families may be eligible to receive a grant up to $2,000. for closing costs, not to exceed actual amount.  Actual down payment and closing cost assistance is based upon the need of the family.
  • Families will receive 8-10 hours of comprehensive homebuyer education and individualized counseling, de-mystifying the homebuying, lending and real estate process.
     
Is there a minimum homebuyer contribution?
Yes. Families must contribute a minimum of 3% of their own funds toward the purchase of their home.  If the family is receiving a gift or is participating in a special loan program, it must still contribute at least $1,000 of its own funds.  The family may also be responsible for other costs, including closing costs. 
 
How do I qualify?
Program participants must be first time homebuyers, which is anyone who has not owned a home in the past 3 years.  Families must complete Homebuyer Educational workshops and counseling sessions.  Family income cannot exceed 80% of Area Medium income for Coconino County, adjusted for family size.  Eligible Buyers must reside or hold employment within the Flagstaff Metropolitan Planning Organization (FMPO) boundary within the last three years.   
 
What are the eligible homes for this program?
  • All homes purchased with FHAP funds must be located within Flagstaff city limits.
  • Homes must be owner occupied.  Homes occupied as rental units with in the past three months are not eligible, unless purchased by the current occupant.
  • The purchase price cannot exceed the HUD Limit for Coconino County of $332,500.
  • Site built homes must be constructed after 1951.  Manufactured homes must be part of a land/home package and must be constructed after 1976 and permanently affixed to the foundation and land and taxed as real property.
  • All homes will be inspected at no charge to assure they meet Housing Quality Standards prior to the close of escrow.  Any home built prior to 1978 must pass a Visual Lead Based Paint Assessment.  Any inspection failures must be corrected prior to closing.
  • FHAP does not allow the purchase of a home located within Flood Zone A.

   FOR TTY ACCESS, CALL THE ARIZONA RELAY SERVICE AT 1-800-367-8939 AND ASK FOR NACOG AT 928-774-1895

 

 

What is the Homebuying Process?
  • Complete and submit a program pre-application to NACOG.
  • Register for and attend the Homebuyer Education Workshops.
  • The family contacts a primary lender of their choice and receives Underwriting Credit Approval.
  • After the family receives Underwriting Credit Approval, NACOG will issue a Reservation of Funds letter for FHAP funds.  Commitments shall be extended on the first come, first serve basis, and shall specify the amount of program commitment.
  • Families must be income eligible at the time the home is purchased; consequently, income and assets will be re-verified prior to the loan closing.
     
Terms of the program

The City of Flagstaff subsidy constitutes an interest-free, payment deferred loan, but is to be repaid upon sale of the home, refinance, or change in title, whichever may occur first. 

This is secured by a Promissory Note and Deed of Trust recorded in Second or Third lien position.  Lien position will be third position if used in conjunction with HOMES FOR ARIZONANS assistance.     

The first mortgage amount should be no less than 80% Loan-to-Value.  Debt ratios guidelines are 33/41%.  This program may be used in conjunction with the HOMES FOR ARIZONANS program.  Maximum cash assistance will be no more than 20% of the property’s appraised value or purchase price, whichever is less.   

Upon sale, lease, refinance or change of title to the home, the City of Flagstaff may recapture the amount secured by the Note and Deed of Trust.  Families may prepay the loan at any time without penalty.   

Other conditions may apply; we strongly suggest contact with NACOG or the City of Flagstaff before beginning such a process. 
 
How do I apply?
Print a program pre-application form from this website, fill it out, and submit it to NACOG.  If you have problems obtaining the pre-application form from this website, you may request a homebuyer program information packet by phone at (928) 774-1895 ext. 1148; be sure to leave your name and mailing address!  Packets are also available by email to khaislet@nacog.org or may be picked up in person at NACOG located at 119 East Aspen Avenue, Flagstaff, AZ.

 

   FOR TTY ACCESS, CALL THE ARIZONA RELAY SERVICE AT 1-800-367-8939 AND ASK FOR NACOG AT 928-774-1895