All Arizona DPA Programs in One Place
Arizona offers numerous down payment assistance programs at the state, federal, and local levels. This comprehensive guide breaks down every major program to help you identify which ones you qualify for and which best suits your needs.
💡 Pro Tip: Many buyers qualify for multiple programs simultaneously. We'll help you stack programs for maximum assistance.
Programs by Category
Arizona State Programs (AzHFA)
HOME Plus Program
Most PopularOverview
Arizona's flagship down payment assistance program offering up to 5% of the loan amount as a grant or deferred loan. Can be combined with FHA, VA, USDA, or conventional loans.
Assistance Amount
- • Up to 5% of loan amount
- • Average assistance: $10,000-$15,000
- • Can cover down payment + closing costs
Key Requirements
- ✓ First-time homebuyer (some exceptions)
- ✓ Credit score minimum 620-640
- ✓ Income below county limits
- ✓ Homebuyer education required
- ✓ Primary residence only
Structure
0% interest deferred loan due at sale, refinance, or payoff. No monthly payments.
Pathway to Purchase
Forgivable GrantOverview
$7,500 forgivable grant for first-time homebuyers. Can be combined with HOME Plus for additional assistance. Funds are forgiven after 3 years of occupancy.
Assistance Amount
- • Fixed $7,500 grant
- • Forgiven after 3 years
- • Stackable with other programs
Key Requirements
- ✓ First-time homebuyer
- ✓ Credit score 640+
- ✓ Income at or below 80% AMI
- ✓ Must use AzHFA first mortgage
- ✓ Occupy home for 3 years
Best For
Buyers planning to stay in home long-term who want maximum grant assistance.
Single Family Affordable Tax Credit (SFATC)
Overview
Receive a dollar-for-dollar federal tax credit equal to 20-40% of annual mortgage interest paid. Can save thousands in taxes annually.
Annual Benefit
- • $1,000-$2,500 tax credit per year
- • 20-40% of mortgage interest
- • Lasts life of the loan
Key Requirements
- ✓ First-time homebuyer
- ✓ Income below program limits
- ✓ Purchase price limits apply
- ✓ Available in targeted areas
Example Savings
$300,000 loan at 7% = $21,000 first year interest × 30% credit = $6,300 tax savings
Federal Down Payment Assistance Programs
FHA Loans (3.5% Down)
While not technically "assistance," FHA loans require only 3.5% down and allow 100% of down payment to come from gifts, grants, or other assistance programs.
Key Benefits
- • Only 3.5% down required
- • Credit scores as low as 580
- • Gift funds allowed
- • Can combine with state DPA
Example
$250,000 home requires only $8,750 down. Combine with HOME Plus for $12,500 DPA = you get home with extra funds for closing costs!
Learn more about FHA loans →VA Loans (0% Down)
No Down PaymentFor eligible veterans, active military, and qualifying spouses. No down payment required, no mortgage insurance, and competitive rates.
Key Benefits
- • 0% down payment
- • No mortgage insurance
- • No minimum credit score
- • Seller can pay closing costs
- • Can use up to 4% for closing costs
Who Qualifies
- ✓ Veterans with qualifying service
- ✓ Active duty military (90+ days)
- ✓ National Guard/Reserves (6+ years)
- ✓ Surviving spouses
USDA Rural Development (0% Down)
No Down PaymentFor homes in designated rural areas (includes many Phoenix suburbs!). 100% financing with no down payment required and low mortgage insurance.
Key Benefits
- • 0% down payment
- • Lower mortgage insurance than FHA
- • Competitive interest rates
- • Seller concessions allowed
Requirements
- ✓ Property in eligible rural area
- ✓ Income below county limits
- ✓ Credit score 640+
- ✓ Primary residence only
📍 Eligible areas include: Casa Grande, Apache Junction, Queen Creek, Maricopa, and many more!
Check USDA Eligibility →HUD Good Neighbor Next Door
50% discount on list price of HUD-owned homes for teachers, law enforcement, firefighters, and EMTs in revitalization areas.
Discount Example
- • HUD Home Listed: $200,000
- • Your Price: $100,000
- • Instant Equity: $100,000
- • Required Down Payment: $500
Who Qualifies
- ✓ Pre-K through 12th grade teachers
- ✓ Law enforcement officers
- ✓ Firefighters & EMTs
- ✓ Must work in revitalization area
- ✓ 36-month occupancy required
Local & County Programs
City of Phoenix Programs
Phoenix Housing Department offers various assistance programs including Home in Five and Mortgage Assistance Program.
- • Up to $20,000 assistance
- • Income restrictions apply
- • Must purchase in Phoenix
City of Tucson Programs
Tucson offers the HOME Program with down payment and closing cost assistance for low-to-moderate income buyers.
- • Up to $15,000 assistance
- • Deferred loan structure
- • First-time buyers priority
Maricopa County Programs
County programs for unincorporated areas and select cities. Funding varies by availability.
- • Variable assistance amounts
- • Geographic restrictions
- • Income limits apply
Pima County Programs
Programs targeting Tucson metro area with focus on affordable housing initiatives.
- • First-time buyer grants
- • Income-based assistance
- • Partner with AzHFA
Special Assistance Programs
Native American Direct Loan (NADL)
VA program specifically for Native American veterans purchasing, building, or improving homes on federal trust land.
Key Benefits
- • No down payment required
- • No private mortgage insurance
- • Competitive interest rates
- • Can be used for purchase or construction
Requirements
- ✓ Eligible Native American veteran
- ✓ Valid Certificate of Eligibility
- ✓ Property on federal trust land
- ✓ Memorandum of Understanding with tribe
Employer-Sponsored Programs
Many Arizona employers offer homebuyer assistance as an employee benefit. Major employers including Banner Health, Mayo Clinic, Intel, and various school districts provide assistance.
Common Benefits
- • $2,500-$10,000 grants
- • Forgivable loans
- • Matching contributions
- • Preferred lender rates
How to Access
Check with your HR department about homebuyer assistance programs. These can often be combined with state and federal programs for maximum benefit.
Quick Program Comparison
| Program | Assistance Amount | Structure | Best For |
|---|---|---|---|
| HOME Plus | Up to 5% of loan | Deferred 0% loan | Most first-time buyers |
| Pathway to Purchase | $7,500 fixed | Forgivable grant | Long-term homeowners |
| VA Loans | 0% down | N/A - no down payment | Veterans & military |
| USDA | 0% down | N/A - no down payment | Rural/suburban areas |
| FHA (3.5%) | Allows gift funds | Low down payment | Lower credit scores |
| Good Neighbor | 50% discount | Purchase discount | Teachers, first responders |
Which Program is Right for You?
👤 If you're a veteran or active military:
Best Option: VA Loan (0% down, no mortgage insurance)
Can't beat 0% down with no PMI. This is your first choice.
🏡 If buying in rural/suburban Arizona:
Best Option: USDA Loan (0% down) or USDA + HOME Plus
Many Phoenix suburbs qualify! Check eligibility first.
💰 If you have some savings but need help:
Best Option: FHA (3.5% down) + HOME Plus DPA
Combine low down payment with DPA for maximum purchasing power.
📚 If you're a teacher or first responder:
Best Option: Check Good Neighbor Next Door program first
50% off can't be beat! Limited inventory but worth checking.
⭐ If you want maximum assistance:
Best Option: HOME Plus + Pathway to Purchase
Stack programs for up to $22,500+ in assistance. We'll show you how!
Not Sure Which Program is Best for You?
Our DPA specialists will review all options and recommend the best combination for your situation