About AZFA Down Payment Assistance
The Arizona Housing Finance Authority (AZFA), also known as Arizona Housing, offers several down payment assistance programs designed to help Arizona residents achieve homeownership. These programs can provide thousands of dollars in assistance to help cover your down payment and closing costs.
AZFA has helped over 75,000 Arizona families purchase homes since its inception. Whether you're a first-time homebuyer or a repeat buyer, AZFA programs can make homeownership more affordable and accessible.
In down payment assistance
Available for different needs
Available throughout Arizona
AZFA Down Payment Assistance Programs
HOME Plus DPA
The HOME Plus Down Payment Assistance program offers up to 5% of the loan amount (maximum $15,000) in assistance. This is AZFA's most flexible program, available to both first-time and repeat homebuyers.
Key Features:
- ✓ Up to 5% of loan amount (max $15,000)
- ✓ Available for purchase and refinance
- ✓ 0% interest, deferred payment second mortgage
- ✓ No monthly payments required
- ✓ Forgiven after 10 years of continuous occupancy
- ✓ Can be used with FHA, VA, USDA, or conventional loans
Requirements:
- • Complete homebuyer education course
- • Minimum credit score: 640
- • Income limits apply (varies by county)
- • Purchase price limits apply
- • Occupy home as primary residence
- • Available in all Arizona counties
Repayment: The assistance is repaid only if you sell, refinance, or no longer occupy the home within 10 years. If you stay in the home for 10 years, the entire amount is forgiven.
PATH (Partners Achieving True Homeownership)
The PATH program provides up to 4% of the loan amount in down payment assistance, specifically designed for moderate-income families.
Key Features:
- ✓ Up to 4% of loan amount in assistance
- ✓ 0% interest, deferred payment
- ✓ No monthly payments
- ✓ Forgivable after 15 years
- ✓ Can combine with other programs
- ✓ Available with FHA, VA, USDA, conventional
Requirements:
- • Income at or below 120% of area median income
- • Minimum credit score: 640
- • Complete homebuyer education
- • Primary residence requirement
- • Purchase price limits apply
- • Available statewide
DPA Second Mortgage
This program provides a second mortgage for down payment and closing cost assistance, with specific targeting for first-time homebuyers and targeted areas.
Key Features:
- ✓ Up to 3.5% of loan amount
- ✓ 0% interest rate
- ✓ Deferred payment (no monthly payments)
- ✓ Forgiveness options available
- ✓ Works with FHA, VA, USDA, conventional
Requirements:
- • Minimum credit score: 620
- • Income limits apply
- • Complete homebuyer education
- • Purchase price limits
- • Primary residence only
- • May have geographic restrictions
Income & Purchase Price Limits by County
AZFA programs have income and purchase price limits that vary by county and household size. Here are examples for major Arizona counties (2025 limits):
| County | Income Limit (1-2 persons) | Income Limit (3+ persons) | Purchase Price Limit |
|---|---|---|---|
| Maricopa (Phoenix) | $117,600 | $135,240 | $548,250 |
| Pima (Tucson) | $107,280 | $123,372 | $498,000 |
| Coconino (Flagstaff) | $102,960 | $118,404 | $498,000 |
| Yavapai (Prescott) | $100,200 | $115,230 | $498,000 |
Note: These limits are updated annually. Income limits may be higher in targeted areas. Contact us for the most current limits for your specific situation.
How to Qualify for AZFA Assistance
Step 1: Check Eligibility
- ✓ Verify income is within limits for your county
- ✓ Check credit score (minimum 620-640)
- ✓ Confirm property is within purchase price limits
- ✓ Ensure you'll occupy as primary residence
- ✓ Review employment and income stability
Step 2: Complete Education
- ✓ Take approved homebuyer education course
- ✓ Course can be online or in-person (typically 6-8 hours)
- ✓ Receive certificate of completion
- ✓ Learn about budgeting, credit, and homeownership
- ✓ Course costs typically $75-$125
Step 3: Work with Approved Lender
- ✓ Choose an AZFA-approved lender (like us!)
- ✓ Submit complete loan application
- ✓ Provide income and asset documentation
- ✓ Get pre-approved for your loan
- ✓ Reserve AZFA funds for your purchase
Step 4: Find Your Home
- ✓ Search for homes within price limits
- ✓ Make offer with assistance contingency
- ✓ Property must meet minimum standards
- ✓ Complete home inspection
- ✓ Close on your new home!
Combining AZFA with Other Programs
AZFA down payment assistance can be combined with various loan types to maximize your benefits:
AZFA + FHA
Combine AZFA assistance with FHA's 3.5% down payment for minimal out-of-pocket costs.
Learn more →AZFA + Conventional
Use assistance to reduce conventional loan down payment to as low as 3%.
Learn more →Real-World Example
Phoenix First-Time Homebuyer Success Story
Buyer Profile:
- • First-time homebuyer in Phoenix
- • Annual income: $85,000
- • Credit score: 680
- • Purchase price: $375,000
- • Using FHA loan (3.5% down)
Without AZFA:
- • Down payment (3.5%): $13,125
- • Closing costs: ~$7,500
- • Total cash needed: $20,625
With AZFA HOME Plus (5% assistance):
- • AZFA assistance (5%): $15,000
- • Down payment needed: $13,125
- • Closing costs: ~$7,500
- • AZFA covers: $15,000
- • Total out-of-pocket: ~$5,625
- • Savings: $15,000
- • No monthly payment on DPA
- • Forgiven after 10 years
Result: This buyer went from needing $20,625 in cash to just $5,625, making homeownership possible much sooner!
Frequently Asked Questions
Do I have to repay AZFA down payment assistance?
It depends on the program and how long you stay in the home. Most AZFA programs are forgiven if you remain in the home for 10-15 years. If you sell or refinance before then, you'll need to repay a portion or all of the assistance.
Can repeat homebuyers use AZFA programs?
Yes! While some programs are restricted to first-time buyers, the HOME Plus program is available to both first-time and repeat homebuyers who meet income and credit requirements.
How long does it take to complete homebuyer education?
Most online homebuyer education courses take 6-8 hours to complete and can be done at your own pace. You'll receive a certificate upon completion that's valid for your AZFA application.
Are AZFA funds limited?
Yes, AZFA programs operate on a first-come, first-served basis with annual funding limits. It's important to reserve funds early in your home search through an approved lender.
Can I use AZFA assistance for a manufactured home?
Yes, AZFA programs can be used for eligible manufactured homes that are permanently affixed to land you own and meet program requirements.
Ready to Access AZFA Down Payment Assistance?
As an AZFA-approved lender, we can help you determine eligibility and reserve your assistance funds.