Updated · Mike Certo, NMLS #260555
Arizona First-Time Home Buyer Grants Explained
"Grant" is the most-searched DPA term in Arizona, but most assistance isn't technically a grant. Here's what an Arizona FTHB grant actually is, how it differs from forgivable and repayable assistance, and how to pick one for your scenario.
Grant vs. forgivable second vs. repayable second
Three structures cover most Arizona DPA programs, and search-volume language uses "grant" loosely. The actual structures:
- True grant: Non-recoverable assistance. Once received, it's yours — no payment, no payoff, no recapture. Rare in Arizona DPA.
- Forgivable second mortgage: A silent second lien that forgives after a stay period (3, 5, 7 years). No monthly payment. If you sell or refinance during the forgiveness window, you owe the unforgiven portion.
- Repayable second mortgage: A second lien with its own monthly payment over 10-30 years. Lower first-mortgage pricing in exchange for the second payment.
Arizona "grant" programs by name
Search-volume buyers use "grant" but the technical structure varies:
- Home In Five Advantage — Maricopa County only. Often called a "grant" because the 4% (or 5% with public-servant bonus) is forgiven after 36 months continued occupancy.
- Home Plus — statewide AZ. Various assistance tiers including forgivable, deferred, and repayable structures.
- Pima Tucson Homebuyer's Solution — Pima County. Forgivable after stay period.
- Flagstaff CHAP — Flagstaff city limits only. Up to $50K matched savings structure.
- Chenoa Fund — national. Forgivable variant available with stay period.
- Arrive Home — national. Forgivable after 36 months occupancy.
- Essex/NHF — national. Down payment + closing cost assistance.
One DPA program per transaction
You pick ONE DPA program per home purchase. Most Arizona DPA programs do not combine with another DPA. DPA pairs with the underlying first mortgage (FHA, VA, USDA, or conventional) — that's the standard arrangement, not "stacking" multiple DPA programs.
Eligibility checklist by program
| Program | FTHB required? | Min FICO | Best for |
|---|---|---|---|
| Home In Five Advantage | No | 640+ | Maricopa County buyers with public-servant bonus eligibility |
| Home Plus | Varies by config | 640+ | Statewide AZ first-time buyers |
| Pima Tucson HBS | Yes | 640+ | Pima County moderate-income buyers |
| Flagstaff CHAP | Yes | 640+ | Flagstaff city limits buyers with planning lead time |
| Chenoa Fund | No | 600+ | Lower-FICO buyers or income above local program caps |
| Arrive Home | No | 620+ | Buyers wanting forgiveness without first-time requirement |
| Essex/NHF | No | 640+ | Closing cost + down payment combination need |
How to pick the right one
Your decision drivers, in order: county (Home In Five only works in Maricopa; Pima HBS only in Pima; Flagstaff CHAP only Flagstaff city), credit score (Chenoa for sub-620), first-time buyer status (Home In Five is FTHB-flexible; Pima HBS requires FTHB), and income (local programs have caps; national programs typically don't).
Next step
The Arizona DPA Program Matcher on our sister site walks through five questions and returns a likely-fit shortlist. Or call us for a 20-minute consult.
Related
FAQ
Is there a true Arizona FTHB grant?
Home In Five Advantage operates like a grant — the assistance is forgiven after 36 months of continued occupancy. Pure non-recoverable grants are rare; most Arizona 'grant' programs are forgivable seconds with stay periods.
Can I combine multiple DPA grants?
No. You pick one DPA program per home purchase. Most Arizona programs explicitly prohibit combining with another DPA.
What FICO do I need for Arizona grants?
Most Arizona DPA programs require 640+. Chenoa Fund accepts 600+. Below 600 usually means credit improvement first.
Do grants affect my mortgage rate?
DPA programs typically include a pricing structure on the first mortgage that funds the assistance — the specific pricing is quoted file-specific.