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Homebuying Assistance
Community Homebuying Assistance Program (CHAP)
The Community Housing Assistance Program (CHAP) is intended to educate and serve households that are working towards the purchase of a home within the Flagstaff city limits. Funded by the City of Flagstaff, CHAP is a down payment and closing cost assistance initiative that provides up to $15,000 in matching funds to households that do not have sufficient cash to purchase a home, but are otherwise mortgage-eligible based on credit and employment. To learn more, download the flyer (PDF).
Apply for Assistance
To apply for our housing programs, fill out the application (PDF) and return to:
Housing Solutions of Northern Arizona
2304 N 3rd Street
Flagstaff, AZ 86004
Disparity Between Wages & Cost of Living
Flagstaff's disparity between wages and cost of living makes it difficult for some families to save the funds required to take the initial step into homeownership. Many of Flagstaff's low and moderate income families earn enough to pay for a mortgage, but do not have enough cash to pay for additional expenses connected with purchasing a home. By assisting with these expenses, the City is able to address a number of community needs.
Homeownership helps stabilize neighborhoods, builds family wealth, supports the community economy, and can instill pride and strength in families who are working hard to make ends meet.
Housing Solutions of Northern Arizona
In order to assist these hardworking members of our community, the City of Flagstaff partners with Housing Solutions of Northern Arizona. Housing Solutions works to educate potential homeowners on the process and requirements of buying a home and, in addition, offers no interest/no payment loans for the down payment and closing costs of the purchase.
Eligibility
Eligibility for these loans is based upon specific criteria. Potential homeowners must not have owned a home for three years and must live in the Greater Flagstaff area either currently or within the past three years. They must also meet income guidelines, depending on the program.
Affordable Homeownership Program
The City's Affordable Homeownership Program allows low to moderate income households access homeownership through a shared equity model. In exchange for an affordable purchase price, homeowners agree to limit their equity so that the next qualified buyer can benefit from an affordable sales price. This agreement is secured through either a ground lease between the City and the homeowner or a deed restriction placed onto the unit. Interested buyers must meet certain requirements to qualify for purchase.
Eligibility requirements:
- At least 18 years old
- US citizen or registered alien
- Current resident or employment commitments within the Flagstaff metro area.
- Gross household income under 100% of the Area Median Income (AMI) for new construction / 125% AMI for resale units - Income Limits Table (PDF)
- Sufficient income and creditworthiness to qualify for a mortgage.
Program details:
- Homeowner obtains a mortgage for the home, and the land underneath is leased from the City to the homeowner through a 99-year renewable ground lease with a $30 - $50 monthly fee.
- The ground lease establishes a homeowner's rights of use and allows for the home to be passed on to heirs.
- The resale price of the home is restricted to maintain permanent affordability, making the home affordable for the next buyer.
- Sellers are limited to 25% equity upon sale of a land trust home; the remaining equity stays within the home as a public investment in a permanently affordable housing.
To learn more, download the Affordable Homeownership Program Flyer (PDF). The Resale Formula (PDF) explains the equity restriction with an example sale scenario. All interested homebuyers must complete the Homebuyer Application (PDF). The City of Flagstaff partners with Housing Solutions of Northern Arizona (HSNA), a local non-profit, to review applicant eligibility. Although applicants must qualify for their own mortgage, down payment assistance is allowed to help defray costs. More information about Down Payment Assistance is available through HSNA, who administers down payment assistance to eligible buyers.
New Affordable Homes Available
Several new developments are currently accepting purchase contracts from eligible buyers. Eligible buyers may utilize a lender of their choice or they can contact any or all of the lenders on the City's lenders list. While the City does not have a preferred lender, the listed lenders on the list have worked with or have agreed to work with City Affordable Homebuying Program clients. Each development and their website is linked below.
Eligibility requirements described above apply. For more information about homeownership options contact jmikelson@flagstaffaz.gov.
Employer Assisted Housing (EAH) Program
The City of Flagstaff will provide up to $10,000 per household to eligible employees to be used for down payment and/or closing cost on the purchase of a home. EAH funds are matching: assistance will match buyer contribution on a dollar-for-dollar basis up to a benefit of $10,000 per household. To learn more, download the flyer (PDF).