• 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, realtor and other community members in understanding TMM’s First Time Homebuyers Program, and to engage all players in developing an affordable home purchase package.  

See Schedule List at the end of the page for details on classes for the

First Time Home Buyers Program!

GUIDELINES

Income Guidelines

All potential first time homebuyers must have gross annual income equal to or less than the following:

The income guidelines are:

• 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 a Community Land Trust. 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).
• Applicants 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. 
• 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 the Housing Counselor, 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 First Time 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.
• Mortgage Revenue Bond (MRB) funds maximum assistance is 4.5% of the purchase price or $6,000., whichever is less.

Loan Parameters

• Loan can be with any lender; (except for MRB funds) however, no sub-prime loans are allowed. Call TMM to obtain the names of the participating MRB lenders if you are interested in utilizing MRB downpayment assistance.
• 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 (Except for MRB funds).
• Lender fees may not exceed $1,000.00, excluding credit report and appraisal fee (MRB program funds allow for MRB fees in addition to $1,000. lender fees.).
• 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.
• MRB funds may be used throughout the City/County including areas within incorporated cities and towns.
• 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.

Home Inspection

• For MRB 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 or MRB 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 and MRB funds.

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 Deborah Dotseth, Housing Specialist at (520) 322-9557.

Understanding The Home Buying Process                FREE

·         Walking through the Pre-Approval Process  ·         Know the Players of the Game  ·         The Closing Process                 

Next class:   Wednesday:  July 7, 2010 5:30 pm to 8:30 pm

Next class:   Wednesday:  August 4, 2010 5:30 pm to 8:30 pm 

Managing and Maintaining Your Home                     FREE

·       Managing Your Money   ·       Maintaining Your Home   ·       Foreclosure Prevention                                                 

 Next class: Saturday:  July 10, 2010 9:30 am to 12:30 pm

Resolving Credit and Debt Issues                       FREE

·         Understanding Your Credit Report     ·         Revolving Doors of Debt                                                                          

Next class:   Wednesday:  July 14, 2010 5:30 pm to 8:30 pm     

Next class:   Wednesday:  August 11, 2010 5:30 pm to 8:30 pm            

In Tucson all classes are free of charge and open to the public 

For more information contact Tresina Lister at (520) 322-9557

TMM is located at 1550 N. Country Club Road in Tucson

All classes are free of charge and open to the public

 For more information contact Tresina Lister at

TMM Family Services, Inc. (520) 322-9557