Arizona Down Payment Assistance Programs Every First-Time Homebuyer Should Know

Buying your first home is exciting, but it can also feel overwhelming, especially when you’re staring down the cost of a down payment. Luckily, Arizona offers several down payment assistance programs designed to help ease that financial burden and make homeownership more accessible for first-time buyers.

Below is a breakdown of three of the most impactful programs currently available across the state: Arizona is Home, HOME Plus, and Home in Five Advantage. Each program has its own unique perks and requirements, so it’s worth taking the time to understand which one may be the best fit for your situation.

Arizona is Home

Best for: First-time buyers in rural Arizona counties

Launched as a state-backed initiative, the Arizona is Home program is all about expanding access to homeownership in rural parts of the state. It offers a 30-year fixed-rate mortgage with a competitive interest rate and includes 4% down payment assistance in the form of a forgivable second mortgage.

Who qualifies:

• First-time homebuyers (defined as not owning a home in the past 3 years)
• Must purchase in a qualifying rural county (e.g., Yavapai, Coconino, Mohave, Navajo, etc.)
• Income must be at or below 100% of the Area Median Income (AMI) in the county
• Must complete a homebuyer education course

How it works:

The down payment assistance is a silent second loan, no payments, no interest and it’s fully forgiven after five years as long as you stay in the home. If you sell or refinance before then, you’ll owe a prorated portion.

This is a great program for those living outside major metros like Phoenix and Tucson who could use a little extra help getting into their first home.

Home Plus

Best for: Buyers statewide who need flexible options

The Home Plus program is administered by the Arizona Industrial Development Authority (Arizona IDA) and is one of the most flexible programs out there. It’s available in every city, county, and zip code in the state.

Who qualifies:

• Annual income must be $136,609 or less
• Minimum credit score of 640
• Debt-to-income ratio up to 50%
• Must complete a homebuyer education course

How it works:

Home Plus provides up to 4% of the loan amount to help cover the down payment, closing costs, or both. It works with FHA, VA, USDA, and conventional loans, giving buyers multiple financing options. On conventional loans, you might also qualify for reduced mortgage insurance premiums.

If you’re looking for a program that covers all of Arizona and gives you a little more wiggle room with credit and loan types, this one’s worth exploring.

Home in Five Advantage

Best for: Buyers purchasing in Maricopa County

If you’re buying a home in Phoenix or anywhere else in Maricopa County, the Home in Five Advantage program might be your golden ticket. It’s a partnership between the Phoenix and Maricopa County IDAs and offers generous assistance up to 6% of the loan amount.

Who qualifies:

• Income up to $141,820
• Minimum credit score of 640
• Debt-to-income ratio up to 50%
• Must take a homebuyer education course

How it works:

The down payment assistance comes in the form of a three-year forgivable second mortgage. As long as you stay in the home for three years, you don’t have to pay it back. Military members, veterans, teachers, and first responders may also qualify for an additional 1% in assistance.

This program is perfect if you’re purchasing in the Phoenix metro area and want a little extra support to cover your upfront costs.

Final Thoughts

These programs are here to help Arizonans overcome one of the biggest barriers to homeownership: the down payment. Whether you’re buying in the heart of Phoenix or settling into a quieter town like Prescott or Show Low, there’s likely a program that fits your needs.

If you’re unsure where to start or want help figuring out which programs you’re eligible for, reach out to a local lender or real estate professional familiar with Arizona’s assistance options. It could be the first step toward unlocking the door to your new home.