Arizona First-Time Homebuyer Assistance Programs

Buying your first home can be an exciting yet expensive process, especially if that home is in Arizona. As of February 2025, the state’s median home price was $455,100, according to Redfin, well above the national median.

Fortunately, there are easy trails that can lead to owning a home in the sun-drenched state. Whether you’re looking in Phoenix, Flagstaff, Sedona or somewhere in between, consider these first-time homebuyer assistance programs.

Arizona first-time homebuyer programs

HOME+PLUS

The Arizona Industrial Development Authority (AzIDA)’s HOME+PLUS program offers a 30-year fixed-rate mortgage coupled with down payment assistance up to 4 percent of your loan principal. The first mortgage can be a conventional, FHA, VA or USDA loan, and it can come with reduced mortgage insurance to help keep your monthly payments low.

HOME+PLUS is available to both first-time homebuyers and those who have owned a home before.

The program’s down payment assistance is a no-payment second loan forgivable after three years, unless you sell the home or refinance the first mortgage before that time is up. The loan doesn’t require a separate application; when you work with an approved mortgage lender and apply for the compatible first mortgage, you’ll automatically be considered for assistance.

• Requirements
  

  • 620 minimum credit score
  • Annual income under $136,609
  • Must complete homebuyer education course
  • Must buy a single- or two-family home, condominium, townhome or manufactured home in Arizona
  • Must use the home as your primary residence

• Pros and cons
  

  Pros

  • Open to first-time and repeat buyers
  • Can be used for the down payment, closing costs, prepaid expenses and more

  Cons

  • Interest rates may be slightly higher than those on standard mortgages

Arizona Is Home

The Arizona is Home program is similar to the Home+Plus program, offering a 30-year fixed-rate mortgage paired with 4 percent down payment assistance. The key difference is that Arizona is Home is limited to first-time buyers in rural counties and has a stricter income cap.

The assistance comes as a forgivable second mortgage, fully forgiven after five years of owner occupancy. The program is a collaboration between the Arizona Department of Housing and AzIDA; it’s designed to expand homeownership in underserved areas.

• Requirements
  

  • Must purchase in an eligible Arizona county (all except Maricopa and Pima)
  • Must be a first-time homebuyer
  • 620 minimum credit score
  • Income must be at or below 100 percent of the area median income
  • Must use a participating lender
  • Must complete a pre-purchase homebuyer education course
  • Must use the home as a primary residence

• Pros and cons
  

  Pros

  • Can be used for the down payment, closing costs, prepaid expenses and more
  • Second mortgage is fully forgivable after five years

  Cons

City-specific homebuyer assistance programs

Community Homebuyer Assistance Program (Flagstaff)

The City of Flagstaff offers a Community Homebuyer Assistance Program that provides down payment and closing cost assistance up to $40,000 for qualified households that don’t have enough cash to purchase a home. Funds are provided on an as-needed, first-come, first-served basis.

The assistance comes in the form of a second, non-forgivable mortgage and is limited to first-time homebuyers. You’ll repay the loan in full when the home is sold, refinanced or not owner-occupied.

• Requirements
  

  • Must be a first-time homebuyer
  • Property must be located within Flagstaff city limits
  • Household income cannot exceed 125 percent of the area median income
  • Must contribute at least $1,000 of your own money
  • Homebuyer counseling and education course required
  • Loan-to-value (LTV) ratio of no less than 79 percent of the purchase price, and a debt-to-income (DTI) ratio no greater than 45 percent

• Pros and cons
  

  Pros

  • Funds can be used on down payment and closing costs
  • No explicit credit score requirements

  Cons

Home in Five Advantage Program (Phoenix)

The Maricopa County Industrial Development Authority (MCIDA) and Phoenix IDA offer the Home in Five Advantage Program to help low- to moderate-income families afford a home in Maricopa County. Through the program, borrowers can obtain a 30-year fixed-rate conventional, FHA or VA loan and a three-year forgivable second loan to be used for a down payment and closing costs. You are not required to repay the second loan unless you sell your home or refinance the first loan within the first three years.

The Home in Five Advantage Program also offers an additional 1 percent in down payment and closing cost assistance to the following:

• Qualified U.S. military personnel and veterans
• First responders
• Teachers
• Borrowers earning less than $49,500 per year

In addition, the program’s BOOST component can help get you an additional 0.5 percent of down payment assistance if you’re buying in a designated low-income neighborhood.

• Requirements
  

  • 640 minimum credit score
  • An annual income under $141,820
  • No more than a 50 percent DTI ratio
  • Complete a homebuyer education course
  • Property must be a single-family home, condominium or townhome in Maricopa County
  • Home must serve as your primary residence
  • You must move in within 60 days of closing

• Pros and cons
  

  Pros

  • Open to first-time and repeat buyers
  • Additional assistance available for qualified borrowers

  Cons

  • Multi-family properties not allowed

Section 32 Homeownership Program (Phoenix)

The City of Phoenix’s Section 32 Homeownership Program offers first-time buyers in Phoenix a 20 percent discount off the appraised value of a home, paid with a 10-year, no-interest, no-payment City Investment loan. The loan is fully forgiven after the 10-year affordability period as long as the home remains the buyer’s primary residence.

The program is designed for low-income households and includes additional benefits like no mortgage insurance, potential grants and the ability to layer with other assistance programs.

• Requirements
  

  • First-time homebuyer
  • Income at or below 80 percent of area median income
  • Minimum 3 percent down payment, with at least 1 percent coming from your funds
  • Meet HUD affordability requirements
  • A landlord recommendation
  • Attend homeownership training and pre-purchase counseling

• Pros and cons
  

  Pros

  • No or reduced-cost mortgage insurance
  • Fully forgivable after 10 years

  Cons

Open Doors Down Payment Assistance Program (Phoenix)

The City of Phoenix’s Open Doors Down Payment Assistance Program provides deferred loans to help first-time buyers in Phoenix cover down payment and closing costs. Buyers earning up to 80 percent of the area median income can receive up to 10 percent of the home’s purchase price in assistance. The loan has no interest and no monthly principal payments and is fully forgiven after a period of affordability, which can last up to 15 years, depending on the loan amount.

The program can be layered with other assistance programs and requires both homebuyer education and one-on-one counseling.

• Requirements
  

  • First-time home buyer
  • Income at or below 80 percent of area median income
  • The home must be in Phoenix and pass inspection
  • Purchase price must be $447,000 or less
  • Complete homebuyer education class and HUD-certified counseling
  • Invest at least $1,000 of personal funds, or lender’s minimum, whichever is greater
  • Obtain at least a two-year home warranty

• Pros and cons
  

  Pros

  • No interest or monthly principal payments
  • Doesn’t require repayment

  Cons

Pima Tucson Homebuyers Solution Program (Tucson)

The Pima Tucson Homebuyer Solution Program offers a 30-year fixed-rate mortgage with down payment and closing cost assistance for buyers in Pima County, which includes Tucson. The assistance comes as a forgivable second mortgage, either forgivable over three years or 30 depending on loan terms, or as a grant for VA loans. There are no purchase price limits or first-time buyer restrictions. The assistance can cover 100 percent of your cash-to-close.

• Requirements
  

  • Must buy in Pima County
  • A credit score of at least 640
  • Debt-to-income ratio must not exceed 45 percent
  • Must occupy the home within 60 days
  • Income limits based on loan type
  • Must complete a HUD-approved homebuyer education course

• Pros and cons
  

  Pros

  • Open to first-time and repeat buyers
  • No purchase price limits

  Cons

Tucson and Pima County Down Payment Assistance Program (Tucson)

This local down payment assistance program is for first-time homebuyers purchasing in Tucson or Pima County. It offers up to 20 percent of the purchase price, provided you can contribute at least $1,000 and your income doesn’t exceed a certain amount. You’ll also need to complete homebuyer counseling. The maximum purchase price is currently $333,925 for an existing home and $389,491 for new construction.

• Requirements
  

  • Must buy in the city of Tucson or Pima County, excluding tribal lands
  • Must be a first-time homebuyer
  • Income must be at or below 80 percent of the area median income
  • Minimum personal contribution of $1,000
  • Must have three months of mortgage payments in reserves
  • Complete HUD-certified homebuyer counseling
  • Home inspection and home warranty required

• Pros and cons
  

  Pros

  • Doesn’t require repayment
  • Can be used for the down payment, closing costs, prepaid expenses and more

  Cons

  • Existing-home purchase price limit is relatively low

Other first-time homebuyer loan programs

If you’re an Arizona first-time homebuyer or veteran or buying in a targeted area, you might be able to lower your tax bill via a mortgage credit certificate (MCC). An MCC allows you to claim your mortgage interest as a federal tax credit, up to $2,000 per year. You’ll need to be within income and purchase price limits, which vary based on household size and buying location. The program costs $500 upfront, then $100 annually to renew.

In addition to Arizona state homebuying programs, consider any of the nationally available first-time homebuyer loan programs, such as:

• FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment as little as 3.5 percent.
• VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
• USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
• Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.

Get started

Now that you know some options available to first-time homebuyers in Arizona, you’re ready to get started with your home purchase. Here are some next steps:

• Do your homework. The Arizona Industrial Development Authority provides a list of mortgage lenders who can help you throughout the process. You can also browse lenders outside of Arizona housing agency partners on Bankrate.
• Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number.
• Compare lenders. Regardless of which program you choose, it’s important to shop around for mortgage offers. Interest rates are always changing, so if you find a rate that’s especially competitive, be sure to lock it in. Also, be sure to check out different homeowners insurance providers in Arizona, too.

• Explore other first-time homebuyer programs by state
  

Additional reporting by Jeff Ostrowski