Pima Industrial Development Authority Extends Help for First-Time Homebuyers
The Pima County Industrial Development Authority has launched another offering of the highly successful PimaTucson LIGHTHOUSE program, an initiative designed to assist first-time homebuyers.
With another commitment of $25 million of bonds, LIGHTHOUSE 6.0 offers a below-market fixed-rate mortgage that also comes with substantial down payment assistance equal to 4% of the loan amount.
This collaborative program between the Pima IDA and the lenders is a direct response to a housing market that has become increasingly less affordable for homebuyers. The median single family home price in Pima County has increased over 50% since the end of 2019, from $252,750 to $394,700. In that time, federal interest rates, which mortgage interest rates are tied to, rose from 2.5% to as high as 8.5%. These two economic factors have made it much harder for the average Pima County resident to buy a home.
The Pima IDA and Pima County Board of Supervisors have risen to this challenge by establishing a bond-funded down payment assistance program that locks in a fixed low-interest mortgage rate. On Sept. 10, the interest rate on LIGHTHOUSE 6.0 loans was locked in at 5.84% on a 30-year mortgage.
“I’m very thankful for the Pima County Industrial Development Authority and its leadership in continuing this program and helping hundreds of first-time homebuyers secure the funding they need at affordable rates,” said Adelita Grijalva, Chair of the Pima County Board of Supervisors.
LIGHTHOUSE 6.0 also includes a distinctive feature where first-time homebuyers will receive 4% of the total mortgage amount up-front for down payment or closing-cost assistance. If the homebuyers stay in their home for five years, the loan for that assistance is fully forgiven.
On average, this 4% assistance equates to approximately $15,000, and considering that almost 40% of potential homebuyers say the lack of a down payment is preventing them from moving into a home, the LIGHTHOUSE 6.0 program is addressing the biggest obstacle facing first-time homebuyers. Importantly, the interest rate remains unaffected even if the Federal Reserve chooses to increase interest rates, offering homebuyers a sense of security.
“We’re thrilled to re-launch the sixth iteration of the Lighthouse Program, which has been a beacon of opportunity for aspiring homeowners,” said Pima IDA President Diane Quihuis.
“Pima IDA has prioritized innovative solutions in a market full of uncertainty, ensuring our community can access homeownership. This program has helped fund approximately $150 million back into our community throughout 2023 and 2024, showcasing our commitment to creating access and fostering stability in our neighborhoods. Together, these initiatives are ensuring more individuals and families can secure a place to call home and develop intergenerational wealth.”
The LIGHTHOUSE program assists about 90 homebuyers per round of funding. No state, local or State of Arizona Housing Trust Fund monies are used in the LIGHTHOUSE programs.
Given the anticipated first-come, first served demand for LIGHTHOUSE 6.0, it is expected that the funds will be fully allocated before the end of September 2024. Lenders interested in offering the program can obtain detailed information at pimatucsonlighthouse.com.
