Down payment assistance
First-time home buyer programs in Arizona.
How Arizona's first-time buyer and down payment assistance programs work, and how to find the right one.
What first-time home buyer programs does Arizona have?
Arizona offers down payment assistance through HOME+PLUS statewide, Home in Five Advantage in Maricopa County and designated Pathway to Purchase areas, plus a federal tax credit through a Mortgage Credit Certificate. Each has its own income, credit and price limits, and most work only through approved lenders.
Many Arizona buyers assume they need a large down payment before they can buy. In fact, there are several programs designed to help qualified buyers cover part of the down payment, closing costs, or both, and they are one of the most underused tools in the market.
Programs differ in what they offer, who qualifies and how the help is structured, and they change over time. Down payment assistance is Jan's specialty, so she can tell you which options are active and which fit your situation.
The types of help available
Assistance generally takes one of a few forms. Which one you get depends on the program.
- Grants, which do not need to be repaid
- Forgivable loans, where the amount is gradually erased over time as long as you stay in the home
- Deferred or repayable second mortgages, which are paid back later or over time
What programs typically look at
Each program sets its own rules, and they can change, so confirm the current terms. Common factors include the following.
- Your household income compared with the program's limits
- Your credit score, since some programs set a minimum
- The purchase price of the home, which may have a limit
- Whether the home will be your primary residence
- Homebuyer education, which some programs require
- Whether you are a first-time buyer; some programs are also open to repeat buyers
Which loans can it work with?
Down payment assistance can often be paired with FHA, VA or conventional loans, depending on the program. The right combination depends on your credit, income and the home you want, and Jan works with lenders who are familiar with these programs.
How the process works
A typical path looks like this.
- Talk with Jan and a lender who knows the assistance programs
- Get pre-approved and confirm which program fits you
- Shop for a home within the program's limits
- Make an offer, then complete the program paperwork alongside the loan
- Close, and keep your program documents for later
Frequently asked questions
Do I have to be a first-time buyer to get down payment assistance in Arizona?
Not always. Some programs are meant for first-time buyers, while others are also open to repeat buyers as long as the home will be your primary residence. Jan checks which programs you may qualify for.
Do I have to pay down payment assistance back?
It depends on the program. Some provide grants that are not repaid, some are forgivable over time while you remain in the home, and some are second mortgages that are repaid later or over time. Jan explains the structure of each option before you commit.
What credit score do I need for Arizona down payment assistance?
Programs and lenders set their own minimums, and they can change, so the best answer is current. Jan can tell you what lenders working with these programs are asking for right now and help you plan if your score needs work.
How is assistance different from the loan itself?
The loan pays for the home, while assistance helps with the down payment or closing costs, and it is usually layered on top of an FHA, VA or conventional loan. A lender who knows these programs can put the two together for you.
Ready to see what you qualify for?
Tell Jan what you are hoping to do and she will map out your next steps.