Tucson Industrial Development Authority offers homebuyer assistance

The Tucson Industrial Development Authority makes purchasing a home more affordable for local residents with its down payment assistance and mortgage tax credit programs.

Buyers whose annual income does not exceed $99,169 may receive up to 5 percent of their mortgage loan to help make their down payment under the Pima Tucson Homebuyer’s Solution (PTHS) program.

Since 2012, the Tucson IDA has helped more than 3,800 local families become homeowners in Pima County through the program. It helped 873 homebuyers in 2017 alone.

The down payment assistance is available with FHA, VA, USDA-Rural Development or conventional 30-year, fixed rate mortgage loans for the purchase of new or existing residential; duplexes, triplexes or four-plexes; detached or attached; condominiums or townhomes.

The Pima Tucson Homebuyer's Solution Program also offers two additional subsidies, available with PTHS Freddie Mac conventional loans, to qualified borrowers meeting certain income limits:

- an additional $1,500 to borrowers whose income is between $29,650 and $47,440 or
- an additional $2,500 to borrowers whose income is $29,650 or below

The Pima Tucson Homebuyer's Solution Program is a joint program of the Tucson IDA and the Pima Industrial Development Authority.

Qualified, first-time homebuyers may also obtain an annual reduction in their income taxes under the Tucson IDA’s Mortgage Credit Certificate (MCC) program.

The MCC operates as an IRS tax credit. The MCC tax credit (40 percent of annual mortgage interest paid – up to a maximum credit of $2,000) reduces the federal income taxes of qualified borrowers purchasing qualified homes, thus having the effect of subsidizing their payments.

A first-time homebuyer may use the tax credit provided by the MCC as long as he/she lives in the home as his/her principal residence.

The Tucson IDA invests program earnings in the Tucson community by providing loans to local small businesses and nonprofit organizations.

For more information, please visit www.tucsonida.org or call Karen Valdez at 520-882-5591, ext. 126.

The Tucson Industrial Development Authority is a nonprofit corporation designated as a political subdivision of the State of Arizona, authorized to provide lower-cost financing for qualified projects through the issuance of revenue bonds. The TIDA provides loans to small businesses such as Johnny Gibson’s Downtown Market, and nonprofit organizations such as Arizona Theatre Company. Its financing of community development projects, when appropriate and when traditional sources of funding may be unavailable, has benefited the Fox Tucson Theatre and United Way of Tucson and Southern Arizona, among other projects.