With the average home price in the Phoenix Metro area around $260,000, a 20% down payment would be $52,000. Even if you could afford to save $500 a month (on top of your rent payment), it would take you almost 9 years to save up for a home!

Some relatively high-income borrowers can get 100% financing, an 80/20 piggyback loan, or some other kind of no- or low-down payment loan. But for low-income borrowers, getting financing from a lender - without 20% down - can be tricky.

That's why the City of Phoenix and Maricopa County stepped in to offer down payment and closing cost assistance - as well as low fixed rates. A recent article in the Arizona Republic said that $40 million in mortgage incentives is available for qualified recipients anywhere in Maricopa County.

The Home in 5 program offers:

• A 30-year fixed-rate mortgage at 6.55% interest
• A 5% grant (for a down payment)

First-time homebuyers, as well as those who haven't owned a home within the past three years, are eligible for the program, which covers homes in Maricopa County. According to the Arizona Republic article, more than 1,600 home buyers have purchased houses through Home in 5 since June, 2006. For more information on the Home in 5 program, visit http://phoenix.gov/HOUSING/sfmrbp.html

And Home in 5 isn't the only down-payment assistance program. Others include:

• The City of Tempe's Community Assisted Mortgage Program (CAMP) and the American Dream Down payment Initiative (ADDI), designed to help low-income households purchase a home. More information is available at http://www.tempe.gov/housing/CAMP/Steps%20to%20Homeonwnership.htm
• Arizona Housing Finance Authority (AzHFA) Mortgage Revenue Bond (MRB) program, which offers prospective homebuyers a 30-year fixed rate mortgage at approximately 1-percent below market
• The City of Phoenix's Home Investment Partnerships Program (HOME). More information is available at http://phoenix.gov/HOUSING/fthb.html
• The City of Glendale's Los Vecinos Housing Development, Inc. First Time Homebuyer Program
• The City of Scottsdale's First Time Homebuyers Program, which offers home purchase counseling, down payment and closing cost assistance, as well as post-purchase counseling to low and moderate income first-time homebuyers. And Scottsdale's Low-Interest Loans Program, which offers 6.30 percent, 30-year fixed rate mortgages and grants equal to 5 percent of the loan amount to be used toward down payment and closing costs. More information is available at http://www.scottsdaleaz.gov/assistance/housing/buyer.asp
• The Federal Housing Administration (FHA) manages the federal homebuyer assistance programs; check out their website at www.fha.gov.

For more information on these programs, as well as lender options, visit www.myphoenixmls.com.