Down payment assistance
Which programs exist, who qualifies and how to use them to buy in Peoria, Glendale, Surprise and across the Valley.
Down payment assistance in Arizona is money from a state, county or lender program that covers part of your down payment or closing costs. It is usually a second mortgage with no monthly payment that is forgiven over time if you keep the home, and it is paired with an approved first mortgage.
I am Jan Tamou, a REALTOR® with Prestige Realty. Many of my buyers think they need 20% down, and they do not. The programs below can lower the cash you need to close, and I will help you match them to the homes you want to see. Program rules, funding and limits change often, so I point you to the official source for each one and confirm the current terms with an approved lender before you rely on them.
These are the main programs Arizona buyers use. Always confirm current terms with the program or an approved lender.
| Program | Who runs it | How it works | Where | Verify |
|---|---|---|---|---|
| HOME+PLUS | Arizona Industrial Development Authority, through approved lenders | A second mortgage that covers part of the down payment and closing costs. It carries no monthly payment and is forgiven after a set number of years if you keep the home. | Statewide | homeplusaz.com |
| Home in Five Advantage | Maricopa County and Phoenix industrial development authorities, through approved lenders | A fixed-rate first mortgage paired with a forgivable second loan for down payment and closing costs. | Maricopa County | Ask an approved lender |
| Pathway to Purchase | Arizona Department of Housing partners | Forgivable assistance for buyers in designated neighborhoods. It is funded in rounds, so it is not always open. | Designated areas only | housing.az.gov |
| Mortgage Credit Certificate (MCC) | Issued statewide by The Community Investment Corporation (CIC) in Tucson | A federal tax credit on part of your mortgage interest each year. It can be combined with some assistance programs. | Statewide | homeplusaz.com/mccs |
Reviewed October 2026. Programs change, and this is not a guarantee of eligibility or funding.
The minimum down payment depends on the loan type. Assistance can cover some or all of it, plus closing costs.
| Loan type | Typical minimum down | Notes |
|---|---|---|
| Conventional (including 3% down options) | As low as 3% | Credit and income rules vary by loan |
| FHA | 3.5% with a qualifying credit score | Mortgage insurance required |
| VA | 0% for eligible veterans and service members | Funding fee may apply |
| USDA | 0% in eligible areas | Income and location limits |
Each program sets its own rules. These are the usual requirements:
Not sure where you stand? Read my guide on whether you qualify.
Many programs require a homebuyer education course, and it is one of the most searched parts of the process. HUD maintains a directory of approved housing counseling agencies, and many offer the course online or in person for little or no cost. Your lender will tell you which providers your program accepts, so ask before you sign up. Start with HUD's find a housing counselor tool.
Programs apply across the Valley, and the homes I search depend on your price range and the program's limits. See my guide to down payment help by city, or go straight to Peoria, Glendale or Surprise.
Down payment assistance in Arizona is money from a state, county or lender program that covers part of your down payment or closing costs. It is usually a second mortgage that is forgiven or deferred, and it is paired with an approved first mortgage.
Yes. Arizona has several, including HOME+PLUS statewide, Home in Five Advantage in Maricopa County and a federal tax credit through a Mortgage Credit Certificate. Some programs require first-time status, which often means you have not owned a home in the past three years.
Qualifying usually depends on your credit score, income, the price and location of the home, and finishing a homebuyer course. Each program publishes its own limits, and they change, so confirm them with an approved lender before you rely on them.
Not always. Some assistance is a grant, but much of it is a second mortgage with no monthly payment that is forgiven over time if you keep the home. If you sell or refinance early, you may have to repay it. Read the terms before you accept.
It depends on the loan. Conventional loans can start at 3% down, FHA at 3.5%, and VA and USDA loans can be 0% for eligible buyers. Assistance programs can cover some or all of the down payment and closing costs.
Yes, many Arizona programs pair with FHA, VA, USDA and conventional loans. Which loan types are allowed depends on the program and the lender, so ask your lender which combination fits your situation.
Programs set a minimum credit score, and it changes over time. Many sit in the 620 to 640 range at present. Confirm the current minimum with a lender, since lenders can also add their own requirements.
Most Arizona assistance programs require one before closing. HUD-approved courses are offered online and in person, and some are free. Your lender will tell you which providers the program accepts.
Sometimes. Some programs, including certain HOME+PLUS and Home in Five options, do not require first-time status. Others do. Ask a lender which programs fit a repeat buyer.
You apply through an approved lender, not directly in most cases. The lender checks your eligibility, reserves the funds and submits your loan. Start by getting pre-approved and telling the lender you want to use assistance.
Estimate only. Does not include taxes, insurance, HOA or mortgage insurance.
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