Arizona Down Payment Assistance Programs

Home Plus AZ is administered by the Arizona Housing Finance Authority and is available statewide through participating lenders. It provides down payment and closing cost assistance as a second lien on the property. The program works with conventional, FHA, VA, and USDA loans.

Income limits and assistance amounts change periodically. [VERIFY: current income limits and assistance percentage at azhousing.gov/home-plus-program] The program also has a purchase price cap, which rules it out for higher-priced homes. Your lender must be an approved Home Plus participant for you to access it.

Arizona is Home is a separate program with its own income and purchase price limits. The Home in Five Advantage program specifically targets Maricopa County. These programs are aimed at moderate-income buyers and often carry competitive assistance amounts. [VERIFY: current program availability, limits, and lender list at arizonaisHome.com]

Both programs define 'first-time buyer' more broadly than most people assume. In many cases, anyone who has not owned a primary residence in the past three years qualifies, even if they have owned before. That reopens eligibility for a lot of buyers who write themselves off.

Most DPA programs in Arizona provide assistance as a second mortgage or second lien rather than a grant. Some are forgivable after a set number of years in the home. Others are due on sale or refinance. Read the terms before you assume the money disappears.

Using DPA does not prevent you from also bringing your own savings to the transaction. In fact, contributing your own funds alongside the assistance can sometimes improve your loan terms. Ask your lender how the two sources of funds interact with the specific program.

Eligibility is determined by the lender who originates the loan, not by me as your agent. Key factors include income relative to area median income (AMI), credit score minimums (which vary by program and loan type), and whether the property you are buying meets the program's requirements.

The process starts with a participating lender, not a housing agency office. Find a lender who is approved for the specific program you want. I keep a list of lenders my buyers have used successfully with these programs and can make introductions.

Phoenix-area new home builders -- particularly the larger national builders active in the North Valley, Queen Creek, and the West Valley -- regularly offer rate buydowns and closing cost contributions as buyer incentives. In some cases, these can be worth more in real monthly savings than a DPA grant.

The trade-off is straightforward: builder incentives come with builder pricing. You are buying at the builder's price with limited room to negotiate, and the lender is often an in-house or preferred lender. That lender may or may not be the most competitive option for your situation. Always run the numbers with an independent lender before committing to a builder's financing package, so you know exactly what you are getting and what you are giving up.

One critical rule on new construction: bring your own agent on the FIRST visit to any builder. Most builders register the buyer-agent relationship on the initial visit. If you walk in without representation, most builders will not allow you to add an agent later -- meaning you lose your representation at no cost to you. Browse available new construction inventory first at AZHomeSearchCentral.com, then visit the model with me.