Down Payment Help

Bellago Homes offers two forms of Down Payment assistance programs.  Both are intended to alleviate the cash burden of purchasing a home and replace it with “sweat equity” from the new homeowner.

FHA Sweat Equity or the Paint for Down Program

Down Payment Workshop Phoenix Bond Sweat EquityLabor performed or materials furnished by the borrower before closing, on the property being purchased, may be considered as the equivalent of a cash investment, to the extent of the estimated cost of the work or materials. (Sweat equity may be ”’gifted”’ subject to the gift requirements and additional requirements shown below.) Additionally, the following apply to sweat equity:

  1. On existing construction, only the repairs or improvements listed on the appraisal are eligible for sweat equity. Any work completed or materials provided before the appraisal is made are not eligible. On proposed construction, the sales contract must indicate the tasks to be performed by the homebuyer during construction.
  2. The borrower’s labor may be considered as the equivalent of cash, if the borrower can demonstrate his or her ability to complete the work in a satisfactory manner. The lender must document the contributory value of the labor through either the appraiser’s estimate or a cost estimating service.
  3. Delayed work (on-site escrow), clean up, debris removal, and other general maintenance cannot be included as sweat equity.
  4. There can be no cash back to the borrower in these transactions.
  5. Sweat equity on a property other than the property being purchased is not acceptable. Compensation for work performed on other properties must be in cash and be properly documented.
  6. Evidence of the source of funds used to purchase and the market value of the materials must be provided if the borrower furnishes these.

For more information on how Bellago can help you with your down payment, please contact us.

cbs_5_logoOur Paint for Down (Sweat Equity) program featured on CBS news.

Our Sweat Equity program featured on ABC’s Home Hunters

Our Paint for Down featured on Channel 3 News, as well as an interview with a home owner going through the program

We are happy to announce that our “Paint for Down” program was featured in the Arizona Republic.

Biniam Debesay, the first homebuyer to participate in the program at Tierra Vista, had his friends help him.

Earlier this month, they plugged nail holes, sealed the baseboards and taped and prepped for painting.

“Painting was the easy part,” he said.

Debesay said he received $3,500 for his labor, which paid for his down payment. But he said the experience was worth more than that.

“It gave me a chance to put my hands into it,” he said. “I can say I did this instead of saying somebody else did it. If I knew how to build the house, I would have done that, too.”

Read Full Article on the Paint for Down Program

Matthew Henson Homeownership Program

Designed to assist eligible first-time homebuyers with the purchase of an affordable home in Phoenix, this program provides a deferred payment loan of $8,500 to assist with down payment and typical buyer closing costs. Buyers must complete 8 hours of Homebuyer Education from a U.S. Department of Housing and Urban Development certified housing counseling agency. The down payment assistance program is administered by Community Housing Resources of Arizona.


Down Payment Assistance funds are offered as a deferred payment loan that:

  • has an interest rate of 0% with no monthly principal payments.
  • is $8,500 with payment due on sale or refinance within the first 5 years of homeownership
  • is forgiven after 5 years.
  • can be layered with City of Phoenix Neighborhood Stabilization Program (NSP) Move-In-Ready or NSP Homeownership Assistance loan when NSP eligible property is purchased.

For more information on how Bellago can help you with your down payment, please contact us.

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