Overview 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: The ultimate checklist for homebuyers
Home Plus program details
Home Plus is a state-run, statewide program providing down payment assistance for homebuyers provided by the Arizona Industrial Development Authority (IDA). Eligible homebuyers can receive a 30-year fixed-rate mortgage with up to 4% down payment assistance (DPA). This mortgage can be used for both your down payment and closing costs.
Home Plus program requirements
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, U.S. Department of Veterans Affairs (VA) loan or U.S. Department of Agriculture (USDA) loan may receive 0%, 2%, 3% or 4% in down payment and closing cost assistance. Someone using a Fannie Mae or Freddie Mac loan can receive 0%, 3% or 4% assistance.
There are also general requirements for Home Plus assistance homebuyers must meet:
- Have a credit score of 620 or more
- Have a maximum income of $155,386
- Use the property as their primary residence
- Purchase a single-family home, condominium, townhome or manufactured home in Arizona
- Choose a lender from an approved list
- Complete a homebuyer education course
Home Plus program fees
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.
Arizona Is Home program details
The Arizona is Home program is a partnership between the Arizona IDA and Arizona Department of Housing (ADOH) that’s specifically designed to help first-time homebuyers purchase rural property within the state. It’s available in all Arizona counties except for Pima and Maricopa counties and Chino Valley, Arizona.
Eligible homebuyers can receive a 30-year fixed-rate mortgage with 4% in down payment assistance. Note that the DPA is distributed as a non-forgivable second mortgage. The loan amount you’ll get depends on where you live in the state and your income, and income limits vary by 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.
Arizona Is Home program requirements
To meet the requirements for an Arizona Is Home loan, homebuyers must:
- Have a minimum credit score of 620
- Live in an eligible Arizona county
- Have an annual income at or below 100% of the AMI
- Be an eligible first-time homebuyer
- Use the home as a primary residence
- Complete a homebuyer education class
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.
Flagstaff programs
Community Homebuyer Assistance Program
The Community Homebuyer Assistance Program (CHAP) provides up to $50,000 in down payment and closing cost assistance for those purchasing within Flagstaff city limits. The program is available on an as-needed, first-come and 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 in Flagstaff within the last three years
- Have lived or worked within Flagstaff for at least 12 months prior to purchase
- Use the home as their primary residence
- Have an income at or below 150% of the AMI
- Contribute at least $1,000 toward the purchase
- Complete homebuyer counseling and an online homebuyer education course
- Have a DTI ratio no higher than 45%
Other eligibility and closing guidelines may apply. Your lender can outline the exact requirements that apply to your loan.
Maricopa County programs
Home in Five Advantage program
The Home in Five Advantage program is a partnership between 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. Home in Five Advantage is valid for FHA and VA loans as well as Fannie Mae HFA Preferred or Freddie Mac HFA Advantage financing. Homebuyers can get up to 6% in assistance for their down payment and closing costs. Qualifying military members and veterans may receive an additional 1%.
The program can be used for new or existing single-family homes, condominiums, planned unit developments (PUDs) or townhouses. However, the homebuyer must meet the following requirements:
- Have an income of $153,440 or less
- Have a minimum credit score of 640
- Have a maximum DTI ratio of 50%
- Use the home as a primary residence and occupy it within 60 days of closing
- Complete an approved homebuyer education course
Home in Five Platinum program
The Home in Five Platinum program offers a 30-year fixed-rate mortgage and a second mortgage loan. This second loan provides up to 4% in down payment assistance. The Home in Five Platinum Program applies to all of Maricopa County with the exception of Paradise Valley.
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, such as neighborhoods identified by the federal government as needing more affordable housing options.
To qualify, the homebuyer must also:
- Have a minimum 640 credit score
- Have a DTI 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 single-family home, townhome, PUD, condo or manufactured home
- 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 programs
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. Residents earning up to 80% 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.
To qualify, homebuyers must:
- 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 U.S. Department of Housing and Urban Development’s (HUD) approved median area purchase price of $447,000
- Provide a minimum $1,000 investment (or meet primary lender’s requirements, whichever is greater)
- Get a home warranty with at least two years of coverage
- Attend homebuyer counseling and complete a homebuyer education course
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
- Complete a criminal background check for all occupants
- Complete a homeownership counseling and education course
- Present a positive landlord recommendation
Other requirements may apply. 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 programs
Pima Tucson Homebuyers Solution program
The Pima Tucson Homebuyers Solution program is available throughout Pima County, including 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 Fannie Mae and Freddie Mac 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, there are no limits on purchase price and no minimum investment is required. To qualify, homeowners must:
- Have a minimum credit score of 640
- Have a maximum DTI ratio of 45%
- Use the loan for a primary residence
- Occupy the home within 60 days of closing
HOME down payment assistance program
The HOME program is a partnership between Pima County and the city of Tucson. It’s available for properties in Tucson or Pima County, except for tribal lands. Borrowers can receive DPA of up to 20% of the purchase price, up to a maximum of $50,000.
In order to qualify, buyers must:
- Supply a minimum $1,000 contribution
- Occupy the property as a primary residence
- Purchase a home warranty
- Complete homebuyer counseling and an education course
- Have less than $10,000 in cash assets
- Have two months of mortgage payments in reserves
- Have a maximum DTI ratio of 45%
- Complete a home inspection
- Not exceed maximum income requirements (varies by household size)
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: FHA loans have lower credit score requirements. Borrowers with a minimum credit score of 580 can qualify for a 3.5% down payment, while borrowers with a credit score between 500 and 579 must put 10% down.
- VA loans: VA loans are designed for members of the military, veterans and their eligible family members. They don’t require a down payment or private mortgage insurance (PMI).
- 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.
- Freddie Mac Home Possible mortgages: Those with limited income may benefit from this type of mortgage, which requires a 3% down payment.
- Fannie Mae HomeReady mortgages: These loans are designed for low-income borrowers with down payments starting at 3%.
- Fannie Mae Standard 97% LTV Option: This loan option is available to first-time homebuyers with a credit score of at least 620. A 3% down payment is required.
- Good Neighbor Next Door program: Certain borrowers, including law enforcement, firefighters, emergency medical technicians and teachers, may qualify for up to 50% off a property in a HUD-designed revitalization area.
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How to qualify for Arizona first-time homebuyer programs
To qualify for Arizona first-time homebuyer programs, you’ll generally need to meet specific property, income and credit requirements. You may also need to meet other requirements, like completing a homebuyer education course.
- Confirm your property is eligible. Many Arizona first-time homebuyer programs restrict where you can buy a home, and they typically have maximum purchase price limits.
- Review your credit report. Most programs require a score of 620 or higher, but credit requirements sometimes depend on mortgage type.
- Check your debt-to-income ratio. Your DTI ratio shows how much of your monthly income is allocated to debt. Lenders typically look for a maximum DTI ratio between 45% and 50%, depending on the type of loan or program.
- 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 loan. Research the list of approved lenders and work with one to get preapproved for your home loan.
- Complete any 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.
- Complete any other requested requirements. Some programs have additional requirements, such as getting a home warranty or submitting a letter of recommendation.
» MORE: 15 first-time homebuyer mistakes and how to avoid them
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 loan they plan on using. Conventional loans typically require a minimum down payment of 3%, while FHA loans require a 3.5% to 10% minimum down payment. Some loans, like VA and USDA loans, don’t require a down payment.
What is the $20,000 down payment assistance program in Arizona?
The Pathway to Purchase program was an Arizona Department of Housing program that launched its final round in 2021. It had provided qualifying first-time Arizona homebuyers with up to $20,000 in down payment assistance.
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. Another option for rural buyers are USDA loans, which offer 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 27, 2026.
- The Arizona Industrial Development Authority, “Home Plus DPA.” Accessed May 27, 2026.
- The Arizona Industrial Development Authority, “Arizona IDA's Arizona Is Home DPA.” Accessed May 27, 2026.
- City of Flagstaff, “Community Homebuyer Assistance Program (CHAP).” Accessed May 27, 2026.
- Home in Five Advantage Program, “Home in Five Advantage Program Guidelines by Loan Type – At-a-Glance.” Accessed May 27, 2026.
- City of Phoenix Housing Department, “Open Doors Down Payment Assistance Program.” Accessed May 27, 2026.
- City of Phoenix Housing Department, “Section 32 Homeownership Program.” Accessed May 27, 2026.
- Pima County Industrial Development Authority, “Affordable Housing and Homeownership.” Accessed May 27, 2026.
- Community Investment Corp., “Down Payment Assistance.” Accessed May 27, 2026.
- U.S. Department of Housing and Urban Development, “FHA Single Family Housing Policy Handbook.” Accessed May 27, 2026.
- U.S. Department of Housing and Urban Development, “About Good Neighbor Next Door.” Accessed May 27, 2026.
- U.S. Department of Agriculture, “Single Family Housing Guaranteed Loan Program.” Accessed May 27, 2026.
- U.S. Department of Veterans Affairs, “Purchase Loan.” Accessed May 27, 2026.
