Struggling to save for a down payment? You're not alone. Down payment assistance (DPA) programs in Arizona help qualified homebuyers bridge the gap between their savings and the down payment needed to purchase a home. These programs offer grants, forgivable loans, and low-interest second mortgages to make homeownership more accessible.
What is Down Payment Assistance?
Down payment assistance programs provide financial help to homebuyers who struggle to save the upfront costs needed to purchase a home. These programs can cover your down payment, closing costs, or both - putting thousands of dollars toward your home purchase.
Arizona offers numerous state, county, and city-level programs designed specifically to help first-time buyers and repeat buyers achieve homeownership.
Arizona DPA At A Glance
Available in Assistance
Programs Available
Minimum Down Payment
Minimum Credit Score
Types of Down Payment Assistance
Grants (Free Money)
True grants that don't need to be repaid. This is the most desirable type of assistance.
- • No repayment required
- • Often for first-time buyers
- • May have occupancy requirements
- • Amounts typically $2,500-$7,500
Forgivable Loans
Loans that are forgiven after you live in the home for a specified period (typically 3-10 years).
- • Becomes grant after time period
- • Must stay in home
- • No monthly payments
- • Amounts typically $5,000-$15,000
Deferred Payment Loans
Second mortgages with no monthly payment. Repaid when you sell, refinance, or pay off your first mortgage.
- • No monthly payment
- • 0% or low interest
- • Due when home is sold
- • Amounts typically $10,000-$25,000
Major Arizona Down Payment Assistance Programs
Arizona Housing Finance Authority (AzHFA)
The state's primary homeownership assistance program offering down payment assistance up to 5% of the loan amount.
Assistance Amount:
Up to 5% of loan amount (typically $7,500-$15,000)
Type:
Second mortgage, 0% interest, deferred payment
Income Limits:
Varies by county (typically $110,000-$145,000)
Credit Score:
Minimum 640 (600 with compensating factors)
Key Features:
- ✓ Can be combined with FHA, VA, USDA, or conventional loans
- ✓ No monthly payment on assistance loan
- ✓ Repaid when you sell, refinance, or pay off first mortgage
- ✓ Must complete homebuyer education course
- ✓ Available statewide
HOME in 5 Advantage Program
Arizona's most popular program offering up to 5% assistance with a forgivable option.
Assistance Amount:
Up to 5% of purchase price
Type:
Forgivable loan over 10 years
Best For:
First-time homebuyers
Credit Score:
Minimum 640
Forgiveness Schedule:
10% forgiven each year for 10 years. Stay in the home for 10 years and the entire amount is forgiven!
City & County Programs
📍 Phoenix
- City of Phoenix Housing - Up to $7,500 grant
- Neighborhood Stabilization - $10,000 forgivable loan
📍 Tucson
- City of Tucson Program - Up to $15,000 deferred loan
- Pima County Assistance - $5,000-$10,000 grants
📍 Maricopa County
- County Housing - Up to $12,000 assistance
- Down Payment Plus - $5,000 closing cost grant
📍 Mesa & Chandler
- City DPA Programs - $5,000-$8,000 assistance
- Special service zones - Additional funding available
General Eligibility Requirements
✓ You Likely Qualify If:
- First-Time Buyer: Haven't owned a home in the past 3 years (for most programs)
- Income Limits: Household income under county limits (typically $90K-$145K)
- Credit Score: Minimum 580-640 depending on program
- Primary Residence: Must live in the home as your primary residence
- Homebuyer Education: Complete an approved 8-hour course (often online)
- US Citizenship: Or permanent resident status
💡 Good to Know:
- Repeat Buyers: Some programs allow repeat buyers in certain situations
- Purchase Price Limits: Home must be under program limits (typically $400K-$550K)
- Property Types: Most programs are for single-family homes, condos, or townhomes
- Combined Programs: You can often stack federal and local programs
- Employment History: Generally need 2 years of steady employment
Best Loan Programs for Down Payment Assistance
Most DPA programs can be combined with these loan types:
How to Apply for Down Payment Assistance
Contact Us
Reach out to discuss which programs you qualify for
Get Pre-Qualified
We'll review your finances and credit
Complete Education
Take the required homebuyer course (8 hours online)
Find Your Home
Shop with your pre-approval letter
Close with Assistance
We apply the DPA funds at closing
Common Questions About Down Payment Assistance
Can I use DPA if I'm not a first-time buyer?
It depends on the program. While most are designed for first-time buyers, some Arizona programs define "first-time" as not owning a home in the past 3 years. Additionally, some programs are open to repeat buyers who meet income requirements.
Will DPA affect my interest rate?
In most cases, no. Down payment assistance is a separate program that doesn't impact your primary mortgage interest rate. However, some lender-specific DPA programs may have slightly higher rates in exchange for the assistance.
How much money do I need to save if I use DPA?
While DPA covers your down payment, you'll typically still need $1,000-$2,000 for earnest money and minimal closing costs. Some programs cover both down payment and closing costs, meaning you could potentially buy with under $1,000 out of pocket.
What happens if I sell my home early?
It depends on the program type. With deferred payment loans, you'll repay the assistance when you sell. With forgivable loans, you may need to repay a prorated amount if you sell before the forgiveness period ends. Grants typically don't need to be repaid.
Can I combine multiple DPA programs?
Sometimes! You may be able to combine a state program with a local city/county program to maximize your assistance. We'll help you identify the best combination for your situation.
Why Work With Todd Uzzell Home Loans for DPA?
DPA Specialists
We know every Arizona program inside and out and help you find the best fit
Handle All Paperwork
We coordinate with program administrators so you don't have to
Maximize Your Savings
We stack programs when possible to get you the most assistance
Down Payment Assistance Available Throughout Arizona
We help homebuyers access down payment assistance programs in all Arizona communities:
Ready to Access Down Payment Assistance?
Let us help you find the perfect assistance program for your home purchase.
Call or text: 480-330-1724
Email: [email protected]