Down Payment Assistance in Arizona

What is down payment assistance in Arizona?

Arizona’s desert cities have seen home prices climb in recent years, but with the right down payment assistance, many buyers are still finding their way to homeownership.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the red rocks of Sedona to the saguaro-studded desert of the south, Arizona homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Arizona or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Arizona

The Arizona Department of Housing (ADOH) has partnered with the Arizona Industrial Development Authority (Arizona IDA), an independent nonprofit entity, to finance affordable housing, homeownership, education, and other community-development projects across Arizona. The Arizona IDA is the central source for statewide DPA programs. They do not lend directly to buyers. Homebuyers apply through an approved participating lender, which will combine the assistance with the mortgage.

Arizona IDA Assistance Programs

The Arizona IDA offers financial assistance to help homebuyers purchase a home in the state of Arizona. They currently offer the following two DPA programs that each come with their own qualifications, requirements, and options:

Home Plus DPA: This program offers up to 4% in down payment and closing costs assistance to homebuyers purchasing a home in all counties, cities, and ZIP codes in Arizona.

Home Plus DPA details include the following:

• Borrowers annual income cannot exceed $155,386 (as of 2026)
• One borrower must complete a homebuyer education course before closing
• Reduced mortgage insurance premiums on conventional (Fannie Mae/Freddie Mac) mortgages
• DPA assistance is provided as a deferred soft second mortgage with no interest and no payments
• The second mortgage is fully forgiven after 5 years/60 months
• Second mortgage must be repaid if the homeowner decides to sell or refinance the home within the first 60 months

Arizona is Home DPA: This program provides eligible homebuyers with a below-market 30-year fixed-rate mortgage combined with up to 4% in down payment assistance. This program is available in all counties, except Maricopa and Pima counties, as well as Chino Valley, Ariz. The program has an annual funding limit, and is first-come, first-served.

Arizona is Home DPA details include the following:

• One borrower must complete a homebuyer education course before closing
• Eligible homebuyers must have an annual income at or below 100% of the area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development
• Eligible borrowers must be first-time homebuyers
• Assistance is structured as a deferred soft second mortgage with no interest and no payments
• The second mortgage is non-forgivable, and the entire balance is due upon sale or refinance of the property

Beyond statewide programs, several Arizona cities and counties have established their own DPA programs. Many of these can be stacked with Arizona IDA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Pima County down payment assistance program

Pima County and its anchor city, Tucson, sit in southern Arizona surrounded by five mountain ranges, offering buyers stunning desert views and a slower pace than Phoenix. Home to the University of Arizona, a rich blend of Mexican and Indigenous culture, and one of the country’s best food scenes (Tucson is a UNESCO City of Gastronomy), it’s a popular choice for buyers wanting character and affordability outside the state’s biggest metro.

Pima Tucson down payment assistance program includes:

Pima Tucson Homebuyer Solution Program: This mortgage loan program by the Industrial Development Authority of the County of Pima and the City of Tucson offers assisted rate loans. Eligible borrowers will receive a 30-year, fixed-rate, fully amortizing first mortgage loan with a forgivable second mortgage loan that can be used toward down payment and closing costs assistance. Depending on the program, the second mortgage loan will be either a three-year forgivable loan or a 30-year forgivable loan. If a VA loan is chosen, the assistance comes in the form of a grant. 

Program details include:

• FHA, VA, USDA, and Conventional (Fannie Mae and Freddie Mac) loans
• No first-time homebuyer requirement
• No purchase price limits
• Minimum credit score of 640
• Maximum Debt to Income (DTI) of 45%
• Property must be retained as primary residence
• Borrower must meet income eligibility requirements for loan type

Flagstaff down payment assistance program

Flagstaff sits high in northern Arizona’s ponderosa pine forest, offering four real seasons, mountain views, and easy access to the Grand Canyon just an hour away. Home to Northern Arizona University and a walkable historic downtown, it draws buyers wanting outdoor adventure without the desert heat of Phoenix.

Flagstaff down payment assistance program includes:

Community Homebuyer Assistance Program (CHAP): The program offers two types of financial assistance to first-time homebuyers looking to purchase a home in the city of Flagstaff.  

Home Purchase Assistance: This program offers up to $50,000 in matching funds to households that are mortgage-eligible based on credit and employment but lack sufficient cash for a down payment and closing costs. The assistance comes in the form of a deferred loan in 10:1 matching funds ($5,000 from the buyer matches with $50,000 in CHAP assistance).

Program details include:

• Household income limit must be at or below 150% of AMI
• The loan comes with no monthly payments and no interest while owner-occupied
• The loan must be repaid when the home is sold, transferred, or refinanced, or the owner no longer occupies the home
• Must be a first-time homebuyer
• Must have lived or worked within the city of Flagstaff for at least 12 consecutive months prior to purchase

Permanent Affordability Pilot Program: This program offers up to 3% of the home’s purchase price to income-eligible households. Instead of requiring repayment, the participating buyer must agree to permanent resale restrictions to keep the home affordable for future residents.

Program details include:

• Household income limit must be at or below 125% of AMI
• When the home is sold, the seller may retain up to 25% of the home’s market appreciation. The remainder stays in the home
• Must be a first-time homebuyer
• Maximum purchase price of $600,000
• Must have lived or worked within the city of Flagstaff for at least 12 consecutive months prior to purchase

Phoenix down payment assistance program

Phoenix is Arizona’s largest metropolitan area, known for year-round sunshine, a striking desert landscape framed by Camelback Mountain, and a food and arts scene that keeps expanding with the city. A steady stream of new residents drawn to the warm climate and relative affordability compared to other Southwest cities keeps fueling growth across the Valley of the Sun. (Metros are the main city and surrounding towns, suburbs, and smaller urban areas.)

Phoenix down payment assistance program includes:

Open Doors Down Payment Assistance Program: The program provides up to 10% of the purchase price of a home in down payment and closing cost assistance for income-eligible buyers. The funds are provided as a deferred payment loan with 0% interest rate and no monthly principal payments.

Program details include:

• Household income must be at or below 80% AMI
• Must complete homebuyer education course and housing counseling
• Must be a first-time homebuyer
• Must live in the home as a primary residence for the term of the loan
• Must qualify for a fixed-rate, fully amortizing mortgage not to exceed 30 years
• Minimum investment from buyer of $1,000
• Maximum purchase price of $447,000

These are some of the main down payment assistance programs available across Arizona. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Arizona down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at homeplusaz.com. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. Arizona IDA programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Arizona property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Arizona down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}