Arizona Homebuying Snapshot
- Median Home Price as of Feb 2025: $455,100 (Redfin)
- Median Down Payment in Jan 2025: $72,225 (Attom)
- Counties with Most Wallet-Friendly Homes: Greenlee, Santa Cruz, La Paz, Cochise, Apache
HOME+PLUS Program
Offering a 30-year fixed-rate mortgage linked to down payment help reaching 4% of your loan balance, the Arizona Industrial Development Authority (AzIDA) rolls out HOME+PLUS. Whether you’re eyeing a conventional, FHA, VA, or USDA loan, the program’s mortgage insurance can be trimmed to ease monthly burdens.
Though aimed at first-time buyers, it’s welcoming to homeowners looking to step back into the market as well.
The down payment aid arrives as a second lien loan without monthly dues, forgiven after three years—unless you decide to sell or refinance sooner. The best part? You don’t submit a separate application. Once you apply for a qualifying first mortgage with an approved lender, assistance consideration happens automatically.
Program Must-Haves
- Minimum credit score: 620
- Annual earnings capped at $136,609
- Mandatory completion of a homebuyer education course
- Eligible property types: single-family, two-family, condos, townhomes, or manufactured homes within Arizona
- Home must be your primary residence
Upsides and Trade-Offs
Advantages
- Accessible to both newbies and repeat buyers
- Funds applicable to down payment, closing fees, prepaid costs, and more
Downsides
- Interest rates may edge slightly above conventional loans
Arizona Is Home
Mirroring the HOME+PLUS blueprint, Arizona Is Home supports first-time buyers with a 30-year fixed mortgage plus 4% down payment aid. This program zooms in on rural counties and enforces a tighter income cap.
Featuring a second mortgage forgiven after five years of residency, it’s a joint venture by the Arizona Department of Housing and AzIDA, crafted to boost ownership in underserved regions.
Eligibility Essentials
- Purchase must be in an eligible Arizona county (excluding Maricopa and Pima)
- First-time homebuyer status required
- At least 620 credit score
- Income no greater than 100% of area median income
- Use of a participating lender mandatory
- Completion of a pre-purchase homebuyer education course
- Residence must be primary
Perks & Pitfalls
Benefits
- Funds can offset down payment, closing costs, and prepaid expenses
- Second mortgage fully forgiven after five years living in the home
Limitations
- Eligible property types are limited
City-Specific Assistance
Community Homebuyer Assistance Program (Flagstaff)
Flagstaff’s city initiative offers up to $40,000 for down payment and closing cost help targeted at qualified buyers lacking sufficient upfront cash. Distribution is on a first-come, first-served basis.
The loan acts as a second lien, non-forgivable, only available to first-time buyers. Full repayment is triggered if the home is sold, refinanced, or ceases to be owner-occupied.
Qualifications
- Must be a first-time buyer
- Property located within Flagstaff city boundaries
- Household income under 125% of area median income
- Minimum personal equity of $1,000
- Required homebuyer counseling and education course completion
- Loan-to-value ratio no less than 79% of purchase price and max debt-to-income ratio at 45%
Pros & Cons
Strengths
- Application of funds toward down payment and closing costs
- No strict credit score cut-off
Drawbacks
- Loan must be paid back
Home in Five Advantage Program (Phoenix & Maricopa County)
Collaborating agencies MCIDA and Phoenix IDA present a program for modest-income families seeking homes in Maricopa County. Borrowers may secure a 30-year fixed conventional, FHA, or VA mortgage alongside a three-year forgivable second loan covering down payments and closing fees. Repayment of this second lien is waived unless selling or refinancing occurs before three years.
An extra 1% aid is extended to qualified U.S. military members, veterans, first responders, teachers, and buyers earning under $49,500 annually.
Additionally, the BOOST feature offers an extra 0.5% assistance for purchases within designated low-income neighborhoods.
Criteria to Meet
- Credit score minimum: 640
- Income ceiling: $141,820 per year
- Debt-to-income ratio capped at 50%
- Completion of homebuyer education course mandatory
- Eligible property types: single-family homes, condos, townhomes in Maricopa County
- Property must be primary residence
- Move-in required within 60 days post-closing
Advantages & Limitations
Pros
- Open to both first-timers and seasoned buyers
- Extra help available for qualifying applicants
Cons
- Excludes multi-family dwellings
Section 32 Homeownership Program (Phoenix)
This Phoenix initiative grants first-time buyers a 20% discount off a home’s appraised price, delivered via a ten-year, no-interest, no-payment City Investment loan. Forgiveness kicks in after a decade, provided the property remains the borrower’s main residence.
Tailored to low-income households, it also offers perks such as waived mortgage insurance, potential grants, and compatibility with other assistance schemes.
Eligibility
- First-time buyer status
- Income at or below 80% of area median
- Down payment minimum 3%, with at least 1% from own funds
- Compliance with HUD affordability guidelines
- Landlord recommendation required
- Completion of homeownership training and pre-purchase counseling
Pros and Cons
Upsides
- Mortgage insurance reduced or eliminated
- Loan forgiven after 10 years of occupancy
Downsides
- Restrictions on property types apply
Open Doors Down Payment Assistance Program (Phoenix)
Designed for first-time buyers in Phoenix, this program offers interest-free deferred loans for down payment and closing costs. Qualifying buyers earning up to 80% of area median income can receive up to 10% of the purchase price. Forgiveness spans up to 15 years depending on loan amount, with no monthly payments required.
This assistance can be combined with other programs and requires both educational and individualized counseling.
Program Requirements
- First-time buyer
- Income at or below 80% of area median income
- Home must be located in Phoenix and pass inspection
- Purchase price capped at $447,000
- Completion of homebuyer education and HUD-certified counseling
- At least $1,000 personal investment or lender minimum
- Two-year home warranty required
Benefits & Drawbacks
Pros
- No interest or monthly principal payments
- Loan forgiven after the affordability period
Cons
- Limited eligibility regarding property types
Pima Tucson Homebuyers Solution Program (Tucson Area)
With a 30-year fixed mortgage combined with down payment and closing cost aid, this Pima County plan serves buyers in Tucson and the surrounding region. Assistance manifests as a forgivable second mortgage (over 3 or 30 years depending on the terms) or grants for VA loans. There are no restrictions on purchase price or first-time buyer status, and cash-to-close may be fully covered.
Requirements at a Glance
- Property situated within Pima County
- Minimum credit score of 640
- Debt-to-income ratio below 45%
- Occupy home within 60 days
- Income limits vary by loan type
- Completion of a HUD-approved homebuyer education course
Pros & Cons
Advantages
- Open for both first-time and returning purchasers
- No cap on purchase price
Cons
- Property eligibility is restricted
Tucson and Pima County Down Payment Assistance Program
Targeted at first-timers buying in Tucson or Pima County (excluding tribal lands), this program offers up to 20% of the purchase price—assuming at least $1,000 personal contribution and income eligibility. Homebuyer counseling is a must. Maximum purchase price sits at $333,925 for resale homes and $389,491 for new builds.
Qualification Checklist
- Purchase within Tucson city or Pima County (tribal lands excluded)
- First-time homebuyer
- Income at or below 80% of area median income
- Minimum $1,000 buyer contribution
- Three months mortgage reserves required
- HUD-certified counseling completed
- Home inspection and warranty compulsory
Pros and Cons
Pluses
- No loan repayment obligation
- Useable for down payment, closing expenses, prepaid costs, and more
Minuses
- Lower purchase price limit on existing homes
Other Loan Options for Arizona First-Timers
- FHA loans: Ideal for buyers with lower credit scores or limited savings, requiring as little as 3.5% down and accepting scores as low as 580.
- HUD programs: Offer aggressive discounts—sometimes up to 50% off—in select areas, paired with minimal down payment demands.
Ready to Jump In? Next Steps
Do Your Homework: Check out lists of approved lenders from the Arizona Industrial Development Authority and work on boosting your credit profile.
Shop Around: Mortgages vary widely by lender and timing, so comparing offers can save you a bundle over the loan’s lifetime.
Discover Homebuyer Programs Beyond Arizona
Explore comparable assistance opportunities across different states to maximize your homeownership options nationwide.
Additional insights provided by Jeff Ostrowski