Program Eligibility

Participant Obligations

Amount of Assistance

Funding Example

Steps to Homeownership

Program Brochure

Frequently Asked Questions

CAMP Income Limits

ADDI Income Limits

Homebuyer Education Class

Contact Us

Section 8  Downpayment Assistance Program Overview

1. Program Summary:

The combination of HUD’s decision to permit current Section 8 participants the ability to use their Housing Assistance Payment for a downpayment on a home, in conjunction with new funds available from The American Dream Downpayment Initiative and Tempe’s existing CAMP program, existing Section 8 participants will now be given an amazing opportunity to “layer” different funds for the purchase of their first home.

In addition, Tempe ’s partnerships with NewTowN and the Tempe Land Trust coupled with these downpayment assistance programs will bring the opportunity for homeownership to those families who believed it was out of their reach.

2. Eligibility:

•  First-time homebuyer

•  Earn at least 30% AMI (Area Medium Income for family size)

• One year continuous full time employment

• Completion of initial Section 8 lease

• No outstanding debts to other Housing Authorities

• No current ownership interests

• No Prior Section 8 mortgage defaults

• No outstanding credit barriers to obtaining mortgage financing

• Household income below 80% AMI

**NOTE:  The income and employment guidelines discussed above do not apply to disabled individuals.

3. Participant Obligations:

• Successful completion of a homebuyer education class

• Obtain mortgage financing

• Comply with “Family Obligations”

4. Amount of Assistance:

•  Twelve times the annual Housing Assistance Payment[1]

• Up to $35,000 from the Community Assisted Mortgage Program (“CAMP”)  for households earning less than 80% AMI

• Up to $10,000 from the American Dream Downpayment Initiative (“ADDI”) for households earning less than 60% AMI

• Up to $15,000 in matching Individual Development and Empowerment Account (“IDEA”) funds if the family has participated in an Individual Development Account (“IDA”) program  for at least 10 months.

•  Family Self Sufficiency escrow balance may also be used for the purchase of the home if the family has completed their contract obligations.

•  Working closely with NewTowN and the Tempe Land Trust will also provide exciting opportunities for families who might not otherwise be able to afford their own home.

5. Funding Example:

• The income used in this example is representative of an average income and family size for current Section 8 participants who meet the initial employment/income guidelines.  Also, the purchase price below represents the maximum purchase price available to the participant assuming their only contribution to the purchase is the required 1%.  Families with FSS escrows, IDA and I.D.E.A. matching funds will have more options available to them.  (i.e. higher sales price or larger initial equity)

Average Income = $22,345.00

Average HH size =4

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