Bottom Line: The Arizona Housing Finance Authority (AZFA) offers first-time home buyers down payment assistance up to $15,000, competitive interest rates, and flexible credit requirements that make homeownership achievable with as little as 3% down.
The Arizona Housing Finance Authority exists to help Arizona residents achieve homeownership through affordable mortgage programs and down payment assistance. As an AZFA-approved lender, Todd Uzzell Home Loans specializes in helping first-time buyers navigate these valuable programs to purchase homes throughout Arizona.
What is the Arizona Housing Finance Authority?
AZFA is a self-supporting state agency that has helped over 75,000 Arizona families achieve homeownership since 1972. They provide mortgage revenue bonds to fund affordable home loans and down payment assistance programs specifically designed for first-time home buyers and those who haven't owned a home in the past three years.
Unlike banks that lend their own money, AZFA works with approved lenders like Todd Uzzell Home Loans to originate loans that meet AZFA guidelines, then purchases those loans to keep the program funded for future Arizona buyers.
AZFA Home Plus Program Overview
The Home Plus program is AZFA's flagship first-time homebuyer product, combining a low-interest first mortgage with optional down payment assistance. This program can be used with FHA, VA, USDA, or conventional financing.
Home Plus Key Features
- Down Payment: As low as 3% (3.5% for FHA)
- Credit Score: Minimum 640 (620 for some programs)
- Rate: Competitive fixed rates below market
- PMI: Required on conventional loans under 20% down
- Maximum Loan: Varies by county (up to $766,550 in 2025)
Who Qualifies?
- ✓ First-time home buyers (or no home in 3 years)
- ✓ Military veterans (no first-time requirement)
- ✓ Meet income limits for your county
- ✓ Purchase in Arizona as primary residence
- ✓ Complete homebuyer education course
- ✓ Meet AZFA and loan type credit requirements
AZFA Down Payment Assistance Programs
One of the biggest barriers to homeownership is saving for a down payment and closing costs. AZFA offers two assistance programs that can be combined with your Home Plus mortgage:
Home Plus DPA
A second mortgage providing 3% of your loan amount (up to $15,000) for down payment and closing costs.
- Amount: 3% of first mortgage amount
- Maximum: $15,000
- Interest Rate: Same as first mortgage + 1%
- Repayment: Monthly payments over 10 years
- Forgiveness: None (must be repaid)
Home in Five Advantage
A forgivable loan providing 5% assistance for targeted areas with higher income limits.
- Amount: 5% of purchase price
- Maximum: Varies by area
- Interest Rate: 0% (no interest)
- Repayment: No monthly payment
- Forgiveness: 20% annually over 5 years
Important: Down Payment Assistance is Optional
You can use AZFA Home Plus mortgage alone if you have your own funds for down payment and closing costs. The assistance programs are available if needed, but not required to participate in AZFA financing.
Income and Purchase Price Limits for 2025
AZFA programs have income and purchase price limits that vary by county and household size. These limits are updated annually and are generally higher than many buyers expect.
| County | Income Limit (1-2 people) | Income Limit (3+ people) | Purchase Price Limit |
|---|---|---|---|
| Maricopa (Phoenix) | $129,900 | $149,385 | $548,250 |
| Pima (Tucson) | $116,700 | $134,205 | $489,450 |
| Pinal | $111,300 | $127,995 | $466,950 |
| Coconino (Flagstaff) | $108,000 | $124,200 | $453,600 |
| Rural Counties | $94,500 - $108,000 | $108,675 - $124,200 | $396,900 - $453,600 |
*Limits shown are approximate for 2025 and subject to change. Contact Todd Uzzell Home Loans for exact limits for your specific county and situation.
How Household Income is Calculated
AZFA counts all income from anyone who will be living in the home and is 18 or older, including:
- • Wages, salaries, and tips from all jobs
- • Self-employment income
- • Social Security, disability, or pension income
- • Investment income, rental income, or other sources
- • Income from adult children or other household members
Step-by-Step AZFA Application Process
Complete Homebuyer Education
Take an approved 8-hour homebuyer education course online or in-person. This is required before closing and covers budgeting, understanding mortgages, home maintenance, and avoiding foreclosure. Cost is typically $75-125. Popular providers include Framework and eHome America.
Contact an AZFA-Approved Lender
Work with an AZFA-approved lender like Todd Uzzell Home Loans. Not all mortgage companies can originate AZFA loans, so it's important to choose an experienced AZFA lender from the start. We'll review your situation, verify you meet income and credit requirements, and determine which AZFA program is best for you.
Get Pre-Approved
Submit your mortgage application with required documentation including pay stubs, W-2s, tax returns, bank statements, and proof of any other income. We'll verify your employment, income, credit, and assets, then issue an AZFA pre-approval letter you can use when making offers on homes.
Find Your Home
Work with a real estate agent to find a home within AZFA purchase price limits. The home must meet minimum property standards for your loan type (FHA, VA, USDA, or conventional) and must be your primary residence. Your AZFA pre-approval letter shows sellers you're a serious, qualified buyer.
Lock Your Rate and Process Loan
Once your offer is accepted, we'll lock your AZFA interest rate and complete the full mortgage underwriting process. This includes ordering appraisal, title work, and homeowners insurance, plus providing any additional documentation underwriters request.
Close on Your Home
Attend your closing appointment to sign final loan documents and receive your keys. Your AZFA Home Plus mortgage and any down payment assistance will fund, and you'll officially be an Arizona homeowner. The entire process typically takes 30-45 days from accepted offer to closing.
Why Choose AZFA vs Conventional Financing
✓ AZFA Advantages
- Lower Down Payment: As low as 3% vs 5-20% conventional
- Down Payment Assistance: Up to $15,000 available
- Below-Market Rates: Typically 0.25-0.50% lower
- Flexible Credit: 640 minimum (620 some programs)
- First-Time Buyer Friendly: Designed specifically for you
- Homebuyer Education: Better prepared for homeownership
⚠ AZFA Considerations
- Income Limits: Must qualify under county limits
- Price Limits: Home must be under maximum price
- Education Required: 8-hour course needed
- Primary Residence: Cannot use for investment/vacation
- Processing Time: May add 5-7 days to closing
- Recapture Tax: Possible if sell within 9 years (rarely applies)
The Bottom Line on AZFA
For first-time home buyers in Arizona who meet the income limits, AZFA programs offer significant advantages including thousands in down payment assistance and interest rates below conventional financing. The requirements are manageable for most buyers, and the homebuyer education actually provides valuable knowledge.
If you're purchasing a home under the price limits as your primary residence, AZFA is almost always the better choice compared to conventional financing alone.
Arizona First-Time Buyer Success Stories
Maria & Pedro - Phoenix
Teachers | $285,000 Home Purchase
"As teachers, we thought homeownership was years away. AZFA's Home Plus program with down payment assistance let us buy our first home with just $3,000 out of pocket. Todd walked us through every step and made it so easy."
Program Used: Home Plus with $8,550 DPA (3%)
Jennifer S. - Mesa
Single Parent | $315,000 Home Purchase
"I was worried my credit score of 660 wouldn't be good enough. AZFA approved me, and with the assistance program I got into a great home in a good school district. My monthly payment is actually less than my previous rent!"
Program Used: FHA + Home Plus with $9,450 DPA
Ready to Start Your AZFA Home Buying Journey?
Let's discuss your eligibility and help you become an Arizona homeowner with AZFA assistance.
Related AZFA Resources
AZFA Loans Overview
Complete guide to all AZFA programs
Down Payment Assistance
All Arizona DPA programs explained
First-Time Buyer Programs
Every program available in Arizona
FHA Loans Arizona
Combine with AZFA assistance
Conventional Loans
Use with AZFA Home Plus
Get Pre-Approved
Start your AZFA application today