Existing home sales fall to lowest level since 1995
The latest home sales numbers painted a discouraging picture for the real estate industry as sales fell to the lowest level since 1995.
Straight Arrow News
- Rising home prices in metro Phoenix are making it difficult for families to afford to buy a home.
- The median home price in Phoenix is now significantly higher than the national median.
- These programs offer resources such as down payment assistance, housing counseling, and affordable mortgage options.
As home prices in metro Phoenix continue to rise, it has become increasingly challenging for many families to buy a house.
The median home price has shot up across the Valley, hitting $476,400 by the end of 2024, which is nearly $60,000 more than the national median new home price, according to data from the National Association of Hispanic Builders’ Cost of Housing Index.
The index ranked Phoenix among the 40 least affordable metro areas out of 176 analyzed, with a cost-of-housing index of 38% and a low-income index of 78%. This means a typical family earning the median income of about $100,000 would need to spend 39% of its gross income to afford a home, while a low-income family earning half the median income would have to spend nearly 80%.
However, there are several assistance programs available that can help Phoenix families secure loans, find affordable housing and navigate homeownership. Here’s a roundup of 12 resources and tips for aspiring homeowners in Phoenix.
Homeownership Voucher Program
Some public housing agencies provide homeownership vouchers to low-income families buying a home for the first time. People can contact their local Public Housing Agency for more information. Phoenix residents can contact the Arizona Department of Housing by calling 602-771-1000 or by emailing greg.cooper@azhousing.gov, or the City of Phoenix Housing Department by calling 602-262-6794 or by emailing lydia.martinez@phoenix.gov.
Public Housing Homeownership Plan
Public housing agencies, through Section 32 of the U.S. Housing Act of 1937, can make public housing dwelling units available for purchase by low-income families and provide assistance for public housing residents in becoming homeowners. Agencies can combine the Public Housing Homeownership Plan with the Homeownership Voucher Program if the family meets the requirements of both programs.
HOME PLUS Down Payment Assistance Program
HOME Plus provides a 30-year fixed-rate mortgage with a down payment assistance grant that Arizona homebuyers can use toward the down payment or closing costs.
HUD housing counselor
A HUD-approved housing counselor can provide people with advice on their specific housing needs, including helping them find an affordable place to live. People can find HUD-approved housing counselors near them by searching online or calling 800-569-4287.
People can also contact their local Public Housing Authority for information about public housing programs like Housing Choice Vouchers. Arizona’s Public Housing Authority phone number is 602-771-1000, or people can also call 800-955-2232 for help in finding their local Public Housing Authority.
Freddie Mac
Freddie Mac has multiple programs to help families living in underserved areas achieve homeownership through special underwriting or pricing, financial education and down payment assistance. The organization’s DPA One tool matches borrowers with down payment assistance programs nationwide, and the online site also offers a beginning guide to homeownership and tracks housing mortgage finance trends.
Down Payment Assistance Finder
This tool helps homebuyers find down payment assistance programs in Arizona with easy qualifying criteria that typically do not require applicants to be first-time home buyers. Visit arizonadownpaymentassistance.com/down-payment-assistance-finder to look for programs
Neighborhood Stabilization Program
The program, administered through the U.S. Department of Housing and Urban Development, helps revitalize Arizona communities to boost and stabilize home values. The program aims for the purchase and redevelopment of foreclosed and abandoned homes and residential properties. For more information, call the Arizona Department of Housing at 602-771-1000.
Fannie Mae Federal National Mortgage Association
Fannie Mae’s website includes useful information and downloadable publications on homeownership, budgeting, shopping for affordable mortgage options and establishing credit.
FHA Funding
The Federal Housing Administration was created to stimulate affordable housing purchases for qualified borrowers. FHA insures your loan so your lender can offer a better deal, including a lower down payment, low closing costs and easy credit qualifying. This site has loan calculators to help you determine whether you can afford a loan, information on the types of loans and the option to apply online for a loan and check its approval status.
HOMEPATH
This site provides information on finding mortgage lenders, budgeting for homeownership, and calculating loan costs. Buyers of HOMEPATH or Fannie Mae properties may also qualify for closing cost assistance if their gross income is at or below the area’s median income.
National Association of Realtors
This site features a national database and relocation search engine that searches for realtors, lenders, neighborhood characteristics, schools, etc.
Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau website offers tools, resources and information as people navigate each step of the homebuying process.
