Most AZ first-time homebuyers (and seasoned buyers) are unaware of the various Zero Down and Arizona Down Payment Assistance Programs available to assist with expenses related to buying a home.
With programs ranging from State offered Grants and Zero Down VA Benefits to City, Rural and Hero opportunities, there are a multitude of options for qualifying homebuyers searching for Arizona homes for sale.
Many Down Payment Assistance (DPA) programs do not require the funds to be paid back if you remain in the home for a number of years (each program varies).
Most programs require minimum credit scores, have income maximums and some set a cap on the maximum purchase price of the home. Guidelines are updated often and new programs come along frequently for first time homebuyers. A knowledgable Mortgage Loan Officer well versed in down payment assistance programs can help advise you on which programs you may qualify for based on your current situation.
Here we’ve compiled a list of the most popular and commonly used down payment assistance programs in Arizona. There are dozens of city and specialty programs, too many to list here, that are available as well.
To find out which program is best for you, schedule a complimentary consultation with one of our Down Payment Assistance Specialist or VA Loan Specialist today!
*** Programs below are not offered by all mortgage companies. Check with a licensed Mortgage Loan Officer on the programs you are interested in. ***
The VA Home Loan was designed to offer long-term financing to eligible American Veterans or their surviving spouses (provided they do not remarry). The basic intention of the VA direct home loan program is to supply home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties. Unlike most Arizona down payment assistance programs, this loan is 100% financing or no money down and has no monthly mortgage insurance.
The U.S. Department of Agriculture Rural Housing loan is 100% financing or no down payment loan. Property eligibility and income limits apply. Currently, much of Pinal County and very few areas in Maricopa County apply.
For homebuyers wishing to put less than 3.5% down on a home purchase in the Phoenix area, there is now a Conventional 97% Loan To Value product from Fannie Mae. This lesser known conventional home loan option of 3% down payment requires a minimum 680 credit score.
The Home in 5 Program offers up to 4.5% of the loan amount towards your down payment in Maricopa County only. Income limitations and debt ratio limitations apply. You do not need to be a First-Time Homebuyer but must meet minimum FICO score requirements and FHA guidelines. Maximum purchase price shall not exceed $300,000.
The Home Plus Program provides a competitive 30 year fixed rate mortgage with a down payment assistance grant up to 3% of the loan amount on a home purchased in Arizona (except Maricopa and Pima counties). Income limitations are county specific and debt-to-income ratio limitations apply.
The HFA Preferred program offers up to 5% of the loan amount towards your down payment in any county except for Pima. Income limitations and debt ratio limitations apply. You do not need to be a First-Time Homebuyer but must meet minimum FICO score and conventional guideline requirements. Maximum purchase price cannot exceed $371,936.
The Pima/Tucson Homebuyers Solution down payment assistance program offers up to a maximum of 5% based on the loan amount towards your down payment and/or closing costs in the Pima County area. Income limitations and debt ratio limitations apply. You do not need to be a first-time homebuyer for this program.
The City of Phoenix Open Doors Homeownership down payment assistance program offers up to a maximum of $15,000 towards your down payment and/or closing costs in the City of Phoenix jurisdictional area. Income limitations and debt ratio limitations apply. You must be a first-time homebuyer for this program.
Eligible people can receive down payment, closing costs, and rehabilitation assistance through the Arizona Dream Downpayment Initiative. The amount of assistance cannot exceed $10,000 or 6% of the home’s purchase price, whichever is greater. Only first-time homebuyers (individuals who have not owned a home during the 36-month time period before purchasing a home) interested in purchasing single-family housing are eligible.
The Chenoa Fund down payment assistance program offers up to 3.5% of the purchase price towards your down payment throughout Arizona. Income limitations are based on Area Median Income and type of down payment assistance. You do not need to be a first-time homebuyer but must meet minimum FICO scores of 620.
A Home Success Mortgage Credit Certificate (MCC) allows you, if eligible, to take a federal income tax credit of 25% of the yearly interest you pay on your home mortgage (up to $2000 per year), even if you refinance your home. The program covers FHA, VA, USDA-RD, and Fannie Mae conventional loans.
The Neighborhood LIFT Program is administered by Neighborhood Housing Services of Phoenix, NHS Phoenix, and can be used to purchase a home in the City of Phoenix. Up to $7,500 can be awarded to the participant in this program to be used towards down payment and closing costs.
The Neighborhood Stabilization Program is a federally funded program which allows applicants to become homeowners through monetary incentives that help with down payment and closing costs. The incentives can be used in the purchase of a newly built or remodeled home in an established local neighborhood.
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.
First-Time Homebuyer Guide for Arizona residents shopping for their first home and first mortgage. Download checklists for required documents, do’s and don’ts, house hunting report cards and preparing for your move.