Arizona Hardest Hit Fund – Save Our Home AZ
Arizona Housing Vouchers * Public Housing
Save Our Home AZ * Making Home Affordable
Save Our Home AZ Program
There are numerous federally funded assistance programs designed to help residents of Arizona with various housing needs.
Save Our Home AZ is the State of Arizona hardest hit foreclosure prevention program established with funding of the Federal Hardest Hit Fund program. As a result of the economic crisis, Arizona was one of the 18 U.S. States hit hardest by high unemployment and declining home prices. Under the Hardest Hit Fund Program, the State of Arizona was allocated close to $268 million. This monetary help became available to Arizona eligible homeowners through Save Our Home AZ – a foreclosure prevention program administered by Arizona Department of Housing (ADOH).
Save Our Home AZ is designed to help eligible homeowners of Arizona State, who are struggling to make their mortgage payments as a result of the economic and real estate downturn. Save Our Home AZ monetary assistance can be used by eligible Arizona homeowners on a case by case basis for mortgage principle reduction for modification or HARP 2.0 refinances, unemployment/underemployment monthly mortgage payments, second lien settlement, and short sale assistance. Although the homeowners can apply and qualify for more than one of the listed foreclosure prevention options, the overall assistance is limited to $100,000 per household. Most Save Our Home AZ assistance to the struggling homeowners is issued as 5-year term loans at 0% interest rates and no monthly payments. Loans are forgiven at the end of their term and upon successful completion of the program. Under the Save Our Home AZ program, the HARP 2.0 and Short sale assistance are provided as grants.
Save Our Home AZ Eligibility Requirements
There are various requirements that must be met by an Arizona homeowner with mortgage in order to qualify for Hardest Hit Fund assistance:
- The home must be in Arizona, Owner Occupied and Primary Residence
- The Home must be Single Family Residence, Condo or Townhouse
- First Mortgage is less than $729,750
- Current mortgages on the Home do not exceed 150% of the original purchase price
- Current mortgage payment(s) is equal or greater than 31% of the borrower’s gross pre-tax monthly income
- The homeowner must provide supporting documents proving minimum 10% of income reduction
- The homeowner may be current on their mortgage provided they do not have more than three months Principal, Interest,
Taxes, and Insurance (PITI) in liquid assets. Otherwise, homeowner must be two payments past due
- The household must have gross income of no more than 150% of the area median income for the County in which the property is located
Save Our Home AZ program offers eligible Arizona homeowners the following options:
Principal Reduction Assistance
This option of Save Our Home AZ program is available to eligible homeowners approved for Permanent Mortgage Modification or HARP 2.0 Refinance. Principal Reduction of the mortgage is a direct monetary help to the qualifying homeowners when they are completing Permanent Mortgage Modification or HARP 2.0 Refinance. Principal Reduction Assistance in Arizona can be up to $100,000 and requires servicer/lender participation. The additional specific requirement for Principal Reduction Assistance is a mortgage balance greater than 120% of property ‘s Fair Market Value before the start of modification or refinance.
Unemployment/Underemployment (Reinstatement) Mortgage Assistance (UMA)
Mortgage payment assistance option is available to eligible homeowners who have experienced an involuntary job loss and are receiving unemployment compensation benefits. UMA will provide monthly mortgage payments including principal, interest and escrow expenses. The maximum amount of the monthly mortgage payments is $2,000 per month for 24 months. To help delinquent borrowers, Save Our Home AZ will pay the mortgage servicer to bring the mortgage current. The maximum assistance per household is $100,000, including all other program assistance. Homeowners with a current monthly income source, excluding unemployment benefits, are required to contribute 31% of their income toward the first mortgage payment. For more details on the reinstatement, assistance details contact Arizona Foreclosure Help Line at: 877-448-1211.
Second Mortgage Settlements
This option of the program helps eligible Arizona homeowners pay off their second lien on the distressed home. Offered assistance is up to 40% of outstanding loan balance up to a maximum of $16,500. The maximum assistance amount is reduced to $8,500 in the case of using the Short Sale Assistance component of the Save Our Home AZ program. A specific requirement for Second Mortgage Settlement is combined mortgage balance of first and second mortgage greater than 120% of property’s Fair Market Value.
Short Sale Assistance
This is for homeowners who can no longer sustain their monthly mortgage obligation due to a hardship. The Short Sale Assistance can be up to $25,000 and cover maximum of 3% of the sales price for buyer’s closing costs paid on behalf of the seller and maximum of $4,500 in transition assistance paid to the homeowner.
How to Apply for Save Our Home AZ program
Contact Arizona Foreclosure Help Line at (877) 448-1211 to inquire or complete your application over the phone. Visit Save Our Home AZ website to apply online. To determine program eligibility, a homeowner must complete an assistance application and provide all necessary supporting documents to be reviewed by the Program underwriters.
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