Pima County Industrial Development Authority Offers Fifth Round of Assistance
The Pima County Industrial Development Authority has launched a fifth round of funding for its highly successful program aimed at assisting first-time homebuyers.
With another commitment of $25 million of bonds, LIGHTHOUSE 5.0 is offering a below-market fixed-rate mortgage that also comes with substantial down payment assistance.
On Jul. 10, the interest rate on LIGHTHOUSE 5.0 loans was locked in at 6.1%, roughly one percentage point below the current residential rate on a 30-year mortgage, providing the homeowner more purchasing power in a market where home prices remain elevated.
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 about $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 5.0 program is addressing the biggest obstacle facing first-time homebuyers.
Given the anticipated first-come, first-served demand for LIGHTHOUSE 5.0, it’s expected that the funds will be fully allocated before the end of July 2024. Potential first-time homebuyers can find a list of approved lenders at pimatucsonlighthouse.com.
“I am thrilled to re-launch the LIGHTHOUSE Program, now in its fifth iteration,” said Pima IDA President Diane Quihuis.
“It continues to be a beacon of opportunity for aspiring homeowners. This program showcases our commitment to creating access and fostering stability in our neighborhoods and for our community. I’m also proud to share that the LIGHTHOUSE Program of the Pima IDA and the Tucson IDA has been honored with an award by the National Association of Local Housing Finance Authorities, highlighting our dedication to excellence and innovation in supporting homeownership.”
The Pima County Board of Supervisors, which created the Pima IDA in 1972, voted in December 2023 to authorize the IDA to issue up to $100 million in single family mortgage bonds to further homeownership in Pima County.
PimaTucson LIGHTHOUSE was launched in August 2023 with Pima IDA and City of Tucson IDA funding in response to price and mortgage rate increases in housing, essentially pricing many families out of the market for a median single-family home.
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 same time, federal interest rates, to which mortgage interest rates are tied, rose from 2.5% to 8.5%. These two economic factors have made it much harder for the average Pima County resident to buy a home.
The four rounds of funding have provided for nearly 400 home loans and, when the loans close, more homebuyers in Pima County. No state, local or State of Arizona Housing Trust Fund monies are used in the LIGHTHOUSE programs.
“I am inspired by the speed and success of the LIGHTHOUSE program in bringing expanded homeownership opportunities to our Pima County residents,” said Adelita Grijalva, chair of the Pima County Board of Supervisors.
“The housing affordability crisis is a national reality and Pima County is working at all levels – affordable housing and market-rate homes – to help our residents bridge their way to living in security, creating generational wealth and achieving equity in homeownership.”
Lenders interested in offering the program can obtain detailed information at pimatucsonlighthouse.com.
