Arizona first-time homebuyer programs
Options include Home Plus, Arizona Is Home and more
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Buying a home is an exciting milestone, but first, you must determine how to pay for it. With the average Arizona home costing almost $435,000 at the time of publishing, it can be difficult to come up with the funds to buy. Thankfully, for aspiring Arizona homeowners, there is help.
In April 2024, Governor Katie Hobbs and the Arizona Department of Housing (ADOH) announced the launch of the new $13 million Arizona is Home program. It reaffirmed Arizona’s continuing commitment to affordable housing for first-time homebuyers.
However, this is just one of the many first-time homebuyer programs in the state. If you are preparing to buy your first home in Arizona, this is what you need to know to make your dream of homeownership a reality.
Arizona first-time homebuyer programs are available throughout the state and in certain cities or counties to provide assistance with your down payment and closing costs.
Jump to insightThere are also special types of loans and federal programs that can provide much-needed financial relief throughout the homebuying process and beyond.
Jump to insightTo qualify for Arizona first-time homebuyer programs, confirm your property is eligible, check your credit score and find out your debt-to-income ratio.
Jump to insightOverview of Arizona first-time homebuyer programs
Arizona offers a host of first-time homebuyer programs that include down payment assistance and help with closing costs.
If you are on a limited income or purchasing in a certain area, you could be eligible to save money on the homebuying process when you use the right Arizona first-time homebuyer program for your new home.
» MORE: 13 first-time homebuyer mistakes and how to avoid them
Home Plus program details
To qualify for a Home Plus loan, you’ll need to make less than $146,503 a year and have a credit score of 620 or more.
Home Plus is a state-run, statewide program providing down payment assistance for homebuyers provided by the Arizona Industrial Development Authority (IDA). A 30-year fixed-rate mortgage with up to 4% down payment assistance (DPA) — 5% for active military and veterans — is available. This mortgage can be used for both your down payment and closing costs.
Requirements for your Home Plus loan depend on the type of mortgage loan you’re using. For example, someone using a Federal Housing Administration (FHA) loan, VA loan or United States Department of Agriculture (USDA) loan may receive 0%, 2%, 3% or 4% in down payment and closing cost assistance. Someone using a Fannie Mae loan can receive 0%, 3% or 4% assistance.
As of publication, all types of Home Plus loans require a credit score of 620 or more and a maximum income of $146,503.
There are additional general requirements for Home Plus assistance. Homebuyers must:
- Use the property as their primary residence
- Purchase a single- or two-family home, condominium, townhome or manufactured home in Arizona
- Choose a lender from an approved list
- Complete a homebuyer education course
The Home Plus program doesn’t stipulate what fees are assessed on the loan. Instead, the costs of the loans vary based on the lender and the type of loan you choose. Generally, lenders assess processing fees, underwriting fees and origination fees, but this varies from lender to lender. There are no prepayment penalties if you want to pay off your loan early.
Former Wall Street executive and real estate adviser Andrew Lokenauth told us Home Plus has been a game changer for his clients. “Last June, I worked with a couple who got about $7k in down payment assistance, which made their dream of owning a home in Scottsdale actually possible,” he said. “And the thing is, they only needed a 640 credit score and completed a quick homebuyer education course.”
The Home Plus AZ program's been a game changer for my clients.”
Arizona Is Home program details
Arizona Is Home is a DPA program offered through a partnership between the Arizona IDA and ADOH. It’s specifically designed to help first-time homebuyers purchase rural property within the state.
DPA is distributed as a forgivable second mortgage following five years of owner occupancy. The homebuyer receives a 30-year fixed-rate mortgage featuring a competitive rate. It includes a five-year, no-interest deferred mortgage of up to 4% of the primary mortgage amount.
The loan amount depends on where you live in the state. There are income limits for each county; for example, Cochise County has a temporary area median income (AMI) limit of $71,200, while Pinal County has a temporary AMI of $109,600.
How much assistance you qualify for depends on your income and location.
Arizona Is Home loan requirements
To meet the requirements for an Arizona Is Home loan, the homebuyer must:
- Have a minimum credit score of 640
- Have not owned real estate within the previous three years
- Live in any Arizona county, except for Pima and Maricopa
- Use the home as a primary residence
- Complete a homebuyer education class
- Have a one-on-one meeting with a Department of Housing and Urban Development (HUD)-certified Home Ownership Advisor
There’s no separate application for Arizona Is Home. Your lender will walk you through the steps as part of your mortgage approval.
... she's building equity instead of paying rent. That's life-changing stuff.”
Lokenauth said he recently helped a teacher in Mesa secure a below-market interest rate and $2,500 in assistance through the program. “The results were pretty impressive,” he said. “... her monthly payment ended up being less than what she was paying in rent. The down payment assistance made it possible, and she's building equity instead of paying rent. That's life-changing stuff.”
Income-based loan amounts for Arizona Is Home
| Income | Loan amount |
|---|---|
| Up to 80% of AMI | Up to $30,000 |
| 81% to 120% of AMI | Up to $20,000 |
As of October 1, 2024, Arizona temporarily increased the AMI up to 100% from 80% for the following counties:
- Apache
- Cochise
- Coconino
- Gila
- Graham
- Greenlee
- La Paz
- Mohave
- Navajo
- Pinal
- Santa Cruz
- Yavapai
- Yuma
The Arizona IDA offers the Arizona Is Home program in all Arizona counties except for Pima and Maricopa.
County- and city-specific homebuyer assistance programs
Depending on your city and county, you may qualify for one of the following additional homebuyer assistance programs.
Pathway to Purchase program
The Pathway to Purchase Homebuyer Assistance Program offers a 30-year fixed-rate mortgage to homebuyers with Fannie Mae HFA Preferred mortgages. It includes a five-year forgivable second mortgage with down payment and closing cost assistance totaling 10% of the purchase price, up to $20,000.
The program is available in 17 Arizona municipalities, including:
- Arizona City
- Avondale
- Buckeye
- Casa Grande
- Coolidge
- Douglas
- El Mirage
- Fort Mohave
- Goodyear
- Huachuca City
- Laveen
- Maricopa
- Red Rock
- Sierra Vista
- Snowflake
- Tucson
- Yuma
To qualify for the program, homebuyers must:
- Have an income of $92,984 or less
- Buy a home priced under $371,936
- Have a credit score of at least 650
- Have a debt-to-income ratio of 45% or lower
- Have a loan-to-value ratio of 95% or lower
- Buy an existing single-family home, townhome or condo
- Occupy the home as a primary residence
- Complete a homebuyer education course
Flagstaff
Community Homebuyer Assistance Program
The Community Homebuyer Assistance Program (CHAP) provides up to $40,000 in down payment and closing cost assistance for those purchasing within Flagstaff city limits. The program is available on an as-needed, first-come, first-served basis.
You must still qualify for the mortgage loan based on employment and credit requirements. Homebuyers must also:
- Not have owned a home within the last three years
- Live in the Greater Flagstaff area currently or have lived there within the past three years
- Have an income at or below 125% of the AMI
- Contribute at least $1,000 toward the purchase
- Have a loan-to-value ratio of at least 79%
- Have a debt-to-income ratio no higher than 45%
- Complete one-on-one homebuyer counseling and an online homebuyer education course
Eligibility and closing guidelines also apply based on your mortgage. Your lender can outline the exact requirements that apply to your loan.
Maricopa County
Home in Five Advantage program
The Home in Five Advantage program is available from both the Maricopa County Industrial Development Authority and Phoenix IDA. This program is designed to provide financial assistance to low- to moderate-income families trying to buy a home in Maricopa County.
Homebuyers can get a 30-year fixed-rate loan with a forgivable second loan for their down payment and closing costs. The second loan is forgiven after three years. Home in Five Advantage is valid for FHA and VA loans as well as Fannie Mae HFA Preferred or Freddie Mac HFA Advantage financing.
Through the program, homebuyers can get up to 6% in assistance for their down payment and closing costs. Qualifying K-12 teachers, military members, veterans, first responders and income-eligible borrowers may receive an additional 1%.
The program can be used for new or existing houses, condominiums, planned unit developments (PUDs) or townhouses of any price. However, the homebuyer must meet the following requirements:
- Have an income of $141,820 or less
- Have a minimum credit score of 640
- Have a maximum debt-to-income ratio of 45%
- Use the home as a primary residence and occupy it within 60 days of closing
- Complete an approved eight-hour homebuyer education course
Home in Five Platinum program
The Home in Five Platinum program offers a 30-year fixed-rate mortgage and a second 0% interest loan. This second loan provides up to 4% in down payment assistance, which can be used for closing costs, pre-closing costs and your down payment.
You must be a first-time homebuyer who hasn’t owned property in Arizona in the last three years. However, this rule doesn’t apply to military veterans or buyers purchasing a home in a targeted area — neighborhoods identified by the federal government as needing more affordable housing options.
The Home in Five Platinum Program applies to the entirety of Maricopa County with the exception of the city of Paradise Valley. To qualify, the homebuyer must:
- Have a minimum 640 credit score (660 for manufactured housing)
- Have a debt-to-income ratio no higher than 50%
- Use the home as a primary residence and occupy it within 60 days of closing
- Purchase a new or existing townhome, PUD, condo or manufactured home with up to four units
- Complete an approved homebuyer education course
Income limits depend on the type of mortgage you have and the number of people in your household. Other restrictions regarding qualifying property may apply, so ask your lender for details.
Phoenix
Open Doors Down Payment Assistance program
The Open Doors Down Payment Assistance program helps first-time homebuyers in Phoenix with down payment and closing assistance.
Those earning up to 80 percent of the AMI may be eligible to receive up to 10% of the home purchase price in DPA. The term depends on the homebuyer’s income and eligibility and can last up to 15 years.
- Have not owned a home in the past three years
- Purchase a primary residence located within the city of Phoenix
- Pass a property inspection
- Buy a property priced at or below 95% of the HUD-approved median area purchase price of $447,000
- Provide a minimum $1,000 investment (or meet their lender’s requirements, whichever is greater)
- Obtain a home warranty with at least two years of coverage
- Complete a homebuyer education course
- Attend one-on-one homebuyer counseling
Section 32 Homeownership Program
The Section 32 Homeownership Program provides a 20% discount on the home's appraised value through the City Investment Loan. This is a 10-year, interest-free loan with no monthly payments, which is fully forgiven if you occupy the home as your primary residence for the entire term.
To qualify, homebuyers must fall at or below 80% of the AMI and must also:
- Make a minimum down payment of 3%, with at least 1% funded by the homebuyer
- Use the home as a primary residence
- Pass a property inspection
- Complete a criminal background check for all occupants
- Complete a homeownership counseling and education course
Other requirements, such as a landlord recommendation and a record of timely payments, are also required. A real estate agent familiar with the program can help you navigate the requirements, identify eligible properties and connect you with the correct application materials.
Pima County
Pima Tucson Homebuyers Solution program
The Pima Tucson Homebuyers Solution program is available throughout Pima County, including the city of Tucson. Most loans through the program are assisted rate loans, though an unassisted first mortgage option is also available.
The program can be used with FHA, VA, USDA and conventional loans. It offers a 30-year fixed-rate mortgage paired with a forgivable second mortgage that lasts either three years or thirty years, depending on the loan type. Assistance can be used for the down payment, closing costs, prepaid items and other mortgage-related expenses.
Borrowers don’t have to be first-time homebuyers, and there are no limits on purchase price. No minimum investment is required. To qualify, homeowners must:
- Have a maximum debt-to-income ratio of 45%
- Use the loan for a primary residence
- Occupy the home within 60 days of closing
Tucson and Pima County Down Payment Assistance Program
The Tucson and Pima County Down Payment Assistance Program is an Arizona first-time homebuyer program available for properties in Tucson or Pima County, except for tribal lands. Borrowers can receive DPA of up to 20% of the purchase price.
In order to qualify, buyers must:
- Be a first-time homebuyer
- Supply a minimum $1,000 contribution
- Occupy the property as a primary residence
- Enroll in a homebuyer education course
- Have an income at or below 80% of the AMI
- Have two months of mortgage payments in reserves
- Complete a home inspection
- Obtain a home warranty
- Maximum 45% debt-to-income ratio
Your lender can help you navigate the income requirements to ensure you qualify.
Other first-time homebuyer programs to consider
There are other first-time homebuyer programs outside of Arizona that may be able to provide assistance.
- FHA loans: These loans from the HUD help those with lower credit scores or smaller down payments obtain a home mortgage loan. There is typically a required down payment of 3.5% of the purchase price, but if you have poor credit, you may need to put down 10% instead. Borrowers should have a minimum credit score of 580.
- VA loans: These loans, courtesy of the Department of Veterans Affairs, are designed for members of the military, veterans and their eligible family members. No down payment is required, and interest rates are typically more competitive than conventional loans.
- USDA loans: Like VA loans, there’s no down payment required for USDA loans. However, these loans are only available for properties in USDA-eligible rural areas. Borrowers typically need a credit score of 640 or higher to qualify.
- Freddie Mac Home Possible mortgages: Those with extremely limited income may benefit from this type of mortgage, which requires a 3% down payment for borrowers with a minimum 660 credit score.
- Fannie Mae HomeReady mortgages: These mortgage loans are also designed for low-income borrowers with down payments starting at 3%. A minimum credit score of 620 is usually required.
- Fannie Mae Standard 97% LTV Option: This loan is available to first-time homebuyers with a credit score of at least 620, regardless of income. A 3% down payment is required.
- Good Neighbor Next Door program: Certain borrowers, including police officers, firefighters, emergency medical technicians and teachers, may qualify for up to 50% off a property in a HUD-designed revitalization area.
» COMPARE: Best mortgage lenders
How to qualify for Arizona first-time homebuyer programs
When you are ready to apply for a home mortgage, there are a few steps you can take to prepare.
- Confirm your property is eligible. Many Arizona first-time homebuyer programs restrict where you can buy or have maximum purchase price limits.
- Review your credit report. Most Arizona first-time homebuyer programs have credit requirements. Most loans require a score of 620 or higher, but credit requirements sometimes depend on mortgage type.
- Check your debt-to-income ratio. Your debt-to-income ratio shows how much of your monthly income is allocated to debt. Lenders typically look for a debt-to-income ratio between 41% and 45%, depending on the type of loan.
- Gather documents. Be sure you have all the documents needed for your loan. This can include proof of income, proof of employment, photo identification and rental information.
- Find a lender. Most Arizona first-time homebuyer programs have specific requirements regarding the mortgage lender you choose for your mortgage loan. Research the list of approved lenders and work with one to get preapproved for your home loan.
- Complete required homebuyer education. Most programs ask you to complete a homebuyer education course. These can typically be completed in person or online and usually take about eight hours, although this can vary.
» LEARN: How to choose a mortgage lender
FAQ
How much do first-time homebuyers have to put down in Arizona?
How much Arizona first-time homebuyers have to put down for a new home depends on the type of mortgage loan they plan on using. Some loans require a traditional 20% down payment, while others offer a 3% down payment. Some don’t require one at all.
What is the $20,000 down payment assistance in Arizona?
The Pathway to Purchase program can provide qualifying first-time Arizona homebuyers with up to $20,000 in down payment assistance.
How do first-time homebuyers qualify for down payment assistance?
First-time homebuyers qualify for down payment assistance by meeting program rules around credit, income, debt and education. Most programs require a minimum credit score, an income limit and a specific debt-to-income ratio. Many also require buyers to complete a homebuyer education course or counseling.
Are there any programs for first-time homebuyers in rural areas of Arizona?
The Arizona Is Home mortgage assistance program provides up to 4% DPA support for those purchasing in rural areas. USDA loans are another option for rural buyers, offering no down payment and favorable terms for eligible properties.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Zillow, “Arizona Housing Market.” Accessed May 17, 2025.
- Office of the Governor Katie Hobbs, “Governor Katie Hobbs Announces $13 Million Arizona Is Home Program.” April 12, 2024.
- Arizona Department of Housing, “Programs for Homebuyers.” Accessed May 17, 2025.
- Arizona Homebuyer Down Payment Assistance Programs, “HOME+PLUS: First Steps and Program Information.” Accessed May 17, 2025.
- Arizona Homebuyer Down Payment Assistance Programs, “HOMEBUYER INFORMATION.” Accessed May 17, 2025.
- City of Flagstaff, “Community Homebuyer Assistance Program.” Accessed May 17, 2025.
- City of Flagstaff, “CHAP: Community Housing Assistance Program.” Accessed May 17, 2025.
- eHousingPlus, “Homeownership Programs.” May 9, 2025.
- City of Phoenix Housing Department, “Open Doors Housing Assistance Program.” March 27, 2025.
- City of Phoenix Housing Department, “Section 32 Homeownership Program.” Accessed May 17, 2025.
- Community Investment Corporation, “Downpayment Assistance.” Accessed May 17, 2025.
- Arizona Department of Housing, “Pathway to Purchase.” Accessed May 17, 2025.
- SoFi, “How to Qualify for a Mortgage: 9 Requirements for a Mortgage Loan.” January 16, 2025.
