Pathway to Purchase To Help Homebuyers in Foreclosure-Hit AZ Cities

Pathway to Purchase To Help Homebuyers in Foreclosure-Hit AZ Cities

In order to provide qualified homebuyers a “Pathway to Purchase” (P2P) their home, the Arizona Department of Housing (ADOH), in conjunction with the Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC), to provide down payment assistance toward a primary residence in seventeen specific municipalities in AZ. The goal is to provide incentive to buyers who have been avoiding housing markets hit hardest by foreclosures.


The ADOH P2P Down Payment Assistance Program aims to lure buyers with an appealing 30-year fixed-rate mortgage with a Down Payment Assistance (DPA) second mortgage equal to a 10% of the purchase price with a cap of $20,000.

The DPA second mortgage is a five-year, forgivable lien against the subject property at a 0% interest rate with no required monthly payments. The DPA can be used toward the down payment and/or closing costs. DPA is only available in accordance with a Pathway to Purchase first mortgage and is funded by AHFPFC/ADOH at the mortgage loan closing.

Homebuyer Eligibility Requirements

    • Mortgage for the purchase of an owner-occupied, primary residence only;
    • Borrower(s) income cannot exceed $92,984;
    • Purchase price must be equal to or lower than $371,936;
    • Fannie Mae HFA Preferred mortgages only;
      • Maximum LTV of 95.0%;
      • Minimum Credit Score of 640;
      • New construction not allowed— must be an existing single-family, townhouse, or condo;
      • 12% charter minimum MI on LTVs 90.0%, 16% charter minimum on LTVs 90.01-95.0%;
        • (MI payment options, borrower paid monthly, single and split premium)
      • Maximum 45% debt-to-income ratio and Fannie Mae HFA Preferred (variation of FNMA HomeReady) underwriting guidelines apply;
    • Completing a pre-purchase homebuyer educational course through a HUD-approved education provider: online, in-person, or over the phone.

P2P Eligible Cities

The program is limited to the following cities:

    • Arizona City;
    • Avondale;
    • Buckeye;
    • Casa Grande;
    • Coolidge;
    • Douglas;
    • El Mirage;
    • Fort Mohave;
    • Goodyear;
    • Huachuca City;
    • Laveen;
    • Maricopa;
    • Red Rock;
    • Sierra Vista;
    • Snowflake;
    • Tucson; and
    • Yuma

The first required step for the Pathway to Purchase program is working through one of ADOH-approved and participating mortgage lender. Said lender will be your contact point throughout the whole process, working with the buyer to obtain a program-qualifying mortgage and registration for the down payment assistance.


Funding for the Pathway to Purchase DPA Second Mortgage Program is provided by the U.S. Department of the Treasury through the Troubled Asset Relief Program; Hardest-Hit Fund. The P2P Program has a $48-million-dollar commitment and is available on a first come first serve basis.