Forgivable grant
The assistance is structured as a "soft second" loan. If you stay in the home long enough (often 3, 5, or 7 years), it's forgiven: you owe nothing back.
Tradeoff: usually a higher first-mortgage rate to fund the forgiven assistance.
Topic guide
Arizona down payment assistance — the 7+ programs that help first-time buyers.
Arizona has more down payment assistance programs than most states. Local AZ grants, county-specific options, and national programs that work statewide. Some are forgiven over time, some are repaid when you sell. The right one depends on your income, your zip code, and how long you'll stay in the home.
Estimate your options with our free tools: the Arizona DPA eligibility estimator shows which programs you may qualify for, and the maximum home price calculator back-solves your affordability.
Program figures verified July 2026 — details change; confirm your scenario with us.
Quick answer first
- What it is: A grant or second loan that helps cover your down payment, closing costs, or both.
- How much: Typically 3–6% of the loan amount, sometimes more in local AZ programs (Flagstaff CHAP up to $50,000).
- Who qualifies: First-time buyers and many repeat buyers, depending on the program. Income limits vary; FICO floors typically 600–620.
- What you give up: Usually a slightly higher first-mortgage rate to fund the assistance. The tradeoff math is honest, not always one-sided.
For the deep dive, program-by-program guidelines, real numbers, and an honest "when DPA isn't the right call" page, we built a sister site dedicated entirely to this topic:
Visit DownPaymentAssistanceArizona.com →The 7+ programs at a glance
Arizona-specific programs (local AZ funding)
| Program | Where it works | Typical assistance |
|---|---|---|
| Home Plus | Statewide AZ (some county exclusions) | Up to 5% of loan amount |
| Arizona Is Home | Statewide AZ (excl. Chino Valley) | Up to 5% of loan amount |
| Home In 5 | Maricopa County only | up to 6.5% of loan amount |
| Flagstaff CHAP | City of Flagstaff only | Up to $50,000 (10:1 match) |
National programs that work in Arizona
| Program | Forms available | FICO floor |
|---|---|---|
| Chenoa Fund | Forgivable + Repayable (FHA-focused) | 600 |
| Arrive Home | Forgivable + Repayable (3.5% or 5%) | 600 |
| Essex / NHF | Amortized + 3-year Forgivable | 600 |
Numbers are typical ranges across program guidelines as of 2025–2026. DPA program details change at least annually, verify current details with us before relying on any specific number.
The three forms DPA takes
Most Arizona DPA falls into one of these three structures. Knowing the difference matters for total cost over the life of the loan.
Repayable second mortgage
The assistance is a real second loan you pay back monthly. Term is usually 10 years, rate slightly above the first mortgage.
Tradeoff: cheaper rate on the first, but more total payments.
Deferred / due on sale
No monthly payments. The assistance sits as a silent second and is repaid only when you sell, refinance for cash-out, or stop occupying the home.
Tradeoff: better cash flow, but you eventually owe the full balance.
The honest tradeoff
DPA isn't free money, that's the part most websites won't tell you. The assistance is funded by raising the rate on your first mortgage slightly. That rate premium is what pays for the "free" down payment.
- Forgivable grants usually carry a higher first-mortgage rate — the trade-off for funding the assistance.
- Repayable seconds typically keep the first-mortgage rate closer to market, but you carry a second monthly payment.
- Deferred seconds sit silent until trigger events (sale, cash-out refinance, no longer primary residence).
In some cases, high credit, decent savings, plan to hold long-term, taking a lower-rate FHA or conventional without DPA actually saves you more over the life of the loan. We'll model both paths against your real numbers and tell you the honest answer.
Stack DPA with FHA, VA, USDA, or Conventional
Most Arizona DPA programs work with FHA first mortgages, the most common pairing for first-time buyers. Some programs also work with:
- Conventional. Home Plus, Arizona Is Home, and others have conventional options. Better long-term cost if your credit is strong.
- VA, most Veterans don't need DPA (0% down already), but Arizona DPA can cover closing costs on VA loans.
- USDA, fewer DPA programs work with USDA, but some do for closing-cost assistance.
The combo of FHA + Arizona DPA is the most common path to near-$0 out-of-pocket for first-time AZ buyers. Mike has closed dozens of these scenarios.
Who DPA works best for
- First-time buyers with limited savings: The program is literally built for this
- Phoenix metro buyers: Home In 5 specifically targets Maricopa County, with strong assistance amounts
- Flagstaff buyers: Flagstaff CHAP is unusually generous (up to $50K with a 10:1 match)
- Buyers planning to stay 5–7+ years: Long enough to hit forgiveness windows on most programs
- Income-qualified households: Local AZ programs cap at up to $157,360 (Home In 5) / up to $155,386 (Home Plus) depending on program/county
Who should skip DPA
- Buyers with 740+ FICO and 5%+ saved: You'll usually get a better long-term rate without DPA
- Buyers planning to refinance or sell within 1–2 years: The rate premium hasn't paid for itself yet
- High-income buyers above program income limits: You may not qualify anyway
- Investment property buyers: DPA is for primary residences only
Want the deep dive?
Our full Arizona DPA resource has program-by-program guidelines, real-numbers comparisons, and an honest "when DPA isn't the best option" page. Built specifically for AZ buyers researching this.
FAQ
Common DPA questions
How much down payment assistance can I get in Arizona?
Home Plus offers up to 5% of the loan amount statewide (4% plus 1% for Active Duty and Veterans), and Home in Five offers up to 6.5% in Maricopa County (5% base, 1% qualified, 0.5% BOOST). City programs go higher: City of Phoenix Open Doors offers up to 10% when funded; reservation availability opens and closes in cycles (confirm current availability with the City of Phoenix before relying on it), and the Pima Tucson Homebuyer's Solution offers up to 5%.
Do I have to be a first-time buyer to use Arizona DPA?
No, not for every program. HUD counts you as a first-time buyer if you have not owned a principal residence in the prior 3 years, and single-parent and displaced-homemaker exceptions apply. A spouse's ownership counts too. Some programs require first-time status, while Home in Five and the national Chenoa, Arrive, and Essex programs allow repeat buyers.
What credit score do I need for Arizona DPA?
The FICO floor depends on the program: Home Plus requires a 620 minimum and Home in Five requires a 640 minimum. The first mortgage underneath has its own floor — FHA allows 580 for 3.5% down (500 to 579 needs 10% down), and Conventional 97, HomeReady, and Home Possible require 620.
Will I owe the down payment assistance back?
It depends on the structure. Forgivable grants are written off after a set occupancy window (often 3, 5, or 7 years) and you owe nothing. Repayable seconds you pay monthly. Deferred "silent second" balances are repaid only when you sell, do a cash-out refinance, or stop using the home as your primary residence.
What are the income limits for Arizona down payment assistance?
Home Plus caps borrower income at $155,386 ($146,503 if you use a government loan), and Home in Five caps household income at $157,360 (as of 6/10/2026). Home Plus requires a 620 FICO and Home in Five requires a 640 FICO. Limits change at least annually, so confirm your current number with us before you rely on it.
Can I stack two DPA programs together?
No. DPA programs do not stack with each other — you can use only one per purchase. The assistance does layer on top of your first mortgage, so Home Plus or Home in Five can pair with an FHA, VA, USDA, or Conventional loan. FHA plus Arizona DPA is the most common near-$0-down path for first-time buyers.
Is DPA always the right move?
No. DPA usually carries a slightly higher first-mortgage rate to fund the assistance. If you already have most of your down payment saved and strong credit, a lower-rate FHA (580 FICO, 3.5% down) or Conventional 97 (620 FICO, 3% down) without DPA can save you more over the life of the loan. Mike will model both paths.
Do I have to take a homebuyer education course?
Yes, most DPA programs require it. The course usually takes 4 to 6 hours, runs online, and is often free. We'll point you to the specific HUD-approved course that satisfies your chosen program, whether that's Home Plus, Home in Five, or a city program like Phoenix Open Doors.
Curious if DPA fits your situation?
20-minute call. We'll model 2–3 programs against your real numbers and tell you the best path, including whether DPA is even the right call for you.