Save Thousands on Your Home Purchase
Down payment assistance (DPA) programs can provide $5,000 to $30,000+ toward your down payment and closing costs, making homeownership accessible even if you have limited savings.
What is Down Payment Assistance?
Down payment assistance programs help qualifying first-time homebuyers cover upfront costs associated with purchasing a home. These programs come in various forms including grants (free money you don't repay), forgivable loans, and deferred-payment loans.
Arizona offers numerous state, county, and city-level DPA programs specifically designed to help residents achieve homeownership. Many can be combined with FHA, VA, USDA, or conventional loans.
Typical Assistance Amount
Arizona DPA Programs
Interest on Many Programs
Forgivable After Years
Types of Down Payment Assistance
Grants (Free Money)
Funds you never have to repay. These are the most desirable form of assistance.
- Pros: No repayment required
- Cons: Often have strict eligibility requirements
- Typical Amount: $2,500 - $15,000
- Best For: Lower-income buyers, specific professions
Forgivable Loans
Second mortgages that are forgiven (erased) after you stay in the home for a set period.
- Pros: Becomes free money after stay period
- Cons: Must stay in home (typically 5-10 years)
- Typical Amount: $5,000 - $25,000
- Best For: Buyers planning long-term residence
Deferred-Payment Loans
Zero-interest loans with no monthly payment due until you sell, refinance, or pay off your first mortgage.
- Pros: No monthly payment, 0% interest
- Cons: Must be repaid eventually
- Typical Amount: $10,000 - $30,000
- Best For: Buyers who need maximum assistance
Major Arizona Down Payment Assistance Programs
Arizona Housing Finance Authority (AzHFA)
Arizona's largest provider of down payment assistance programs
Home Plus Program
- • Assistance Amount: Up to 5% of loan amount
- • Type: Deferred-payment second mortgage
- • Interest Rate: 0%
- • Repayment: Due at sale, refinance, or payoff
- • Eligible Loans: FHA, VA, USDA, Conventional
- • Credit Score: 640 minimum
- • Income Limits: Vary by county
Home in Five Advantage
- • Assistance Amount: 5% of loan amount
- • Type: Forgivable second mortgage
- • Forgiveness: 20% per year over 5 years
- • Requirement: Must remain in home 5 years
- • Eligible Loans: FHA, VA, USDA, Conventional
- • Credit Score: 660 minimum
- • Special: Higher income limits than Home Plus
Learn More: Visit AzHousing.gov for current rates and program details.
City of Phoenix Programs
Local assistance for Phoenix-area homebuyers
Phoenix Home Buyer Program
- • Assistance: Up to $7,500
- • Type: Forgivable loan
- • Forgiveness: 10 years
- • Use: Down payment and closing costs
- • Requirement: Purchase in Phoenix city limits
- • Income Limits: 80% AMI
Neighborhood Stabilization Program
- • Assistance: Up to $15,000
- • Type: Forgivable loan
- • Forgiveness: 5-15 years
- • Target: Specific Phoenix neighborhoods
- • Property: Must be in designated areas
Pima County & City of Tucson Programs
Assistance for southern Arizona homebuyers
Pima County Home Loan Program
- • Assistance: 3-4% of purchase price
- • Type: Grant or deferred loan
- • Max Assistance: $10,000
- • Eligible Areas: Pima County
Tucson Homebuyer Assistance
- • Assistance: Up to $5,000
- • Type: Forgivable loan
- • Forgiveness: 5 years
- • Requirement: City of Tucson property
Specialty Down Payment Assistance Programs
Teachers
Special programs for Arizona educators
- • Good Neighbor Next Door (HUD)
- • Teacher Next Door programs
- • Grants up to $15,000
Veterans & Military
Additional assistance for service members
- • Operation Homefront
- • VA Homeownership Grants
- • Up to $10,000 assistance
Healthcare Workers
Programs for nurses, EMTs, medical staff
- • Heroes for Homeownership
- • Hospital employer programs
- • Varies by employer
Law Enforcement
Assistance for police, fire, corrections
- • Good Neighbor Next Door
- • Local municipality programs
- • 50% discount on HUD homes
General Eligibility Requirements
You Must Meet:
-
First-Time Buyer Status
Haven't owned a home in 3 years (or meet other definitions)
-
Income Limits
Typically 80-120% of area median income
-
Credit Score
Usually 620-660 minimum depending on program
-
Homebuyer Education
Complete HUD-approved course before closing
-
Primary Residence
Property must be your primary home
-
Purchase Price Limits
Home must be within program price limits
You May Need:
-
Minimum Personal Contribution
Some programs require 1-2% from your own funds
-
Reserve Requirements
Savings equal to 2-3 months housing payments
-
Occupancy Agreement
Commit to living in home for specified years
-
Property Inspection
Home must meet safety and quality standards
-
Employment Verification
Stable employment history (typically 2 years)
-
Approved Lender
Work with lender approved for the program
Important: Each program has unique requirements. We'll help you identify which programs you qualify for and guide you through the application process.
Review detailed eligibility requirements →How to Apply for Down Payment Assistance
Get Pre-Qualified
Contact an approved lender to review your finances and determine which programs you qualify for.
Complete Education
Finish required homebuyer education course from HUD-approved provider.
Find Your Home
Search for properties within program guidelines and make an offer.
Submit Application
Your lender submits both mortgage and DPA applications together.
Close on Home
Complete closing process with assistance funds applied at settlement.
Timeline Expectations:
The down payment assistance application process typically takes:
- • Pre-qualification: 1-3 days
- • Homebuyer education: 6-8 hours (can be done online)
- • Home search: Varies (2-12 weeks typical)
- • Application processing: 30-45 days
- • Total from start to closing: 60-90 days average
Combining DPA with Loan Programs
Down payment assistance can be combined with various loan types to maximize your buying power. Here's how different combinations work:
DPA + FHA Loan
Most Popular Combination
- • FHA requires only 3.5% down
- • DPA can cover entire down payment plus closing costs
- • Credit scores as low as 580 may qualify
- • Excellent for first-time buyers with limited savings
DPA + Conventional Loan
Best for Higher Credit Scores
- • Conventional loans require 3-5% down
- • DPA can cover down payment
- • Typically requires 620+ credit score
- • May have better rates than FHA for strong borrowers
DPA + VA Loan
For Veterans
- • VA loans already require $0 down
- • DPA can cover closing costs and funding fee
- • Available only to eligible veterans and service members
- • Can result in truly zero out-of-pocket costs
DPA + USDA Loan
Rural Property Buyers
- • USDA loans require $0 down in eligible rural areas
- • DPA can cover closing costs
- • Income limits apply for both USDA and DPA
- • Property must be in USDA-eligible area
Common Questions About DPA Programs
Do I have to pay back down payment assistance?
It depends on the program type. Grants never need to be repaid. Forgivable loans are forgiven after you stay in the home for a set period (typically 5-10 years). Deferred-payment loans must eventually be repaid when you sell, refinance, or pay off your mortgage, but they have 0% interest and no monthly payment.
Can I use DPA if I have savings for a down payment?
Yes! Many programs allow (and some require) you to contribute your own funds in addition to the assistance. Having your own savings can help you qualify for better loan terms and gives you a financial cushion after closing.
Will DPA affect my mortgage interest rate?
Some DPA programs require you to obtain your first mortgage through the same agency, which may have slightly higher rates than market rates. However, many programs can be used with any approved lender at competitive rates. The money saved on the down payment often outweighs any minor rate difference.
What if I need to sell before the forgiveness period ends?
If you sell or move before a forgivable loan is fully forgiven, you'll need to repay a prorated amount. For example, if you received $10,000 forgivable over 10 years but sell after 6 years, you'd owe back $4,000. Some programs have exceptions for job transfers, military deployment, or hardship situations.
How competitive are these programs?
Competition varies by program. State-level programs like AzHFA typically have funds available year-round. Smaller local programs may have limited funding and fill up quickly. It's best to apply early in the year when new funding is allocated, and work with an experienced lender who can move quickly.
Ready to Access Down Payment Assistance?
Our team specializes in Arizona DPA programs and will help you find the best options for your situation
✓ Free Consultation
We'll review your finances and identify all programs you qualify for
✓ Application Assistance
We handle all paperwork and coordinate with program administrators
✓ Expert Guidance
Years of experience maximizing DPA benefits for Arizona buyers
Related First-Time Homebuyer Resources
Down Payment Assistance by Arizona Location
DPA programs are available throughout Arizona. Program availability and amounts vary by location.