Arizona Down Payment Assistance Programs for First-Time Buyers (2026)

Q: What is down payment assistance?

Down payment assistance (DPA) is help, usually money in the form of a grant or a second loan, that goes toward your down payment and/or closing costs. It works alongside your main mortgage and comes with program-specific rules on eligibility and repayment.

Q: What's the difference between a DPA grant and a second loan?

A grant may not need to be repaid, or is forgiven over time if you meet conditions like staying in the home for a set period. A second loan (often a deferred or silent second lien) is money you borrow that sits behind your first mortgage; some require payments, some are deferred, and some are forgiven over time. Arizona's HOME Plus assistance is a deferred, no-payment second lien that is forgiven after 5 years. Terms vary by program.

Q: Do I have to be a first-time buyer to get down payment assistance in Arizona?

Not always. Some programs favor or require first-time buyers (often defined as not having owned a home in the past three years), while others are open to repeat buyers. Verify current rules with a participating loan officer.

Q: Can I use down payment assistance with an FHA or VA loan?

Yes. HOME Plus is designed to work with common low-down loan types, including conventional (3% down), FHA (3.5% down), and VA/USDA (0% down if eligible), and the assistance layers on top. Eligible loan types and overlays vary by program, so verify the current options with a participating loan officer.

By Renato Rodic, Licensed Mortgage Loan Originator — NMLS #1615600 · NEXA Lending (formerly NEXA Mortgage) · serving Arizona's Phoenix East Valley (Chandler, Gilbert, Mesa). Published: June 25, 2026 · Last updated: July 1, 2026

▶ Watch: Arizona Down Payment Assistance Programs Most Buyers Miss (1:04)

Short answer: Down payment assistance (DPA) can help cover your down payment and/or closing costs so you can buy sooner — often through a grant or a second loan layered on top of your main mortgage. Arizona offers a statewide program, HOME Plus, run by the Arizona Industrial Development Authority, that provides 0–5% of your first mortgage toward your down payment and/or closing costs as a no-payment second loan that's forgiven after 5 years. Because income limits, assistance amounts, and eligibility rules change from year to year, the current details below are dated and sourced — but always confirm what you actually qualify for with a participating loan officer before you count on any specific number.

What is down payment assistance (DPA)?

Down payment assistance is help — usually money — that reduces the cash you need up front to buy a home. It can go toward your down payment, your closing costs, or both. DPA does not replace your main mortgage; it works alongside it. The two most common forms are:

Grants (or "forgivable" assistance): funds you may not have to repay, or that are forgiven over time if you stay in the home for a set period. Terms vary by program.
Second loans (silent or deferred second liens): a second loan that sits behind your first mortgage. Some are deferred (no monthly payment until you sell, refinance, or pay off the first loan); some carry a payment; some are forgiven over time. Read the terms carefully.

Neither form is "free money" without conditions — each program sets its own rules on who qualifies, how much you get, and what happens to the assistance later.

Typical eligibility concepts

Most DPA programs weigh some combination of the following. The exact thresholds change frequently, so treat these as concepts to ask about, not fixed rules:

First-time buyer status — many programs favor or require first-time buyers, often defined as not having owned a home in the past three years. Some programs are open to repeat buyers.
Income limits — most programs cap household or borrower income. These are updated periodically and vary by program and sometimes by county.
Homebuyer education — many programs require at least one borrower to complete an approved homebuyer education course before closing.
Purchase price / property limits — some programs cap the home price or restrict eligible property types.
Credit and loan-type requirements — minimum credit scores and eligible loan types (conventional, FHA, VA, USDA) vary by program.

Because all of these can shift year to year, the smartest move is to have a participating loan officer check the current rules against your actual situation.

Low down payments come first — DPA layers on top

Before you even reach for assistance, today's main loan programs already allow low down payments:

Conventional: as low as 3% down (Conventional 97).
FHA: 3.5% down.
VA / USDA: 0% down if you're eligible.

(Source: The Mortgage Reports — FHA vs. Conventional 97.)

Down payment assistance can pair with these low-down loan structures to cover part or all of that remaining down payment and/or your closing costs — shrinking the cash you bring to the table even further.

Arizona's statewide program: HOME Plus

Arizona's primary statewide down payment assistance program is HOME Plus, administered by the Arizona Industrial Development Authority (Arizona IDA). It pairs a fixed-rate first mortgage with down payment/closing-cost assistance and is available statewide (HomePlusAZ.com; Arizona IDA — Home Plus).

Current program details (dated and sourced — verify the latest against the program sites before relying on them):

Assistance amount: 0%–5% of the first mortgage, usable toward your down payment and/or closing costs (HomePlusAZ.com, Arizona IDA).
Structure: a no-interest, no-payment, deferred "soft" second mortgage that is fully forgiven after 5 years (60 months) — nothing to pay back as long as you keep the home through the forgiveness period (HomePlusAZ.com).
Income limit: borrower(s) annual income ≤ $155,386 (as of 4/6/2026; updated periodically by the Arizona IDA) (HomePlusAZ.com).
Homebuyer education: at least one borrower must complete an approved homebuyer education course before closing (Arizona IDA).
Availability / funding: statewide across all Arizona counties and cities, offered year-round — HOME Plus does not run out of funding the way a fixed-pool grant does (HomePlusAZ.com).

HOME Plus is designed to work with common low-down loan types (conventional, FHA, VA, and USDA), so the assistance can layer on top of a 3% conventional, 3.5% FHA, or 0%-down VA/USDA first mortgage. Exact overlays vary by loan type — ask a participating loan officer which structure fits your scenario.

Program terms are updated periodically by the Arizona IDA. The income limit above (≤ $155,386) is dated 4/6/2026 — confirm the current figure and rules on HomePlusAZ.com or arizonaida.com before relying on any specific number.

Local, county, and lender programs

Beyond the statewide program, cities, counties, nonprofits, and individual lenders may offer their own down payment assistance. Availability, amounts, and rules vary widely and change often. [PENDING: list any local Chandler/Gilbert/Mesa city or county DPA programs Renato works with]

How much could DPA save you?

The dollar impact depends on the program you qualify for and your purchase price. With HOME Plus, assistance runs 0–5% of your first mortgage — on a $400,000 loan, a 5% award would be roughly $20,000 put toward your down payment and/or closing costs, as a deferred second that's forgiven after 5 years. (Illustrative example only — your actual award, purchase price, and eligibility determine the number; this is not a quote or a guarantee.) As a general concept: assistance applied to your down payment or closing costs reduces the cash you need at the table, which for some buyers is the difference between "not yet" and "ready to buy."

How do you apply?

Statewide and most other DPA programs are accessed through an approved participating lender, not directly with the state — your loan officer enrolls your loan in the program and coordinates the assistance. Arizona offers HOME Plus statewide; ask me whether your scenario qualifies and I'll walk you through the current terms and next steps. [PENDING: confirm NEXA Lending is an approved/participating HOME Plus lender]

Want to know which programs you may qualify for based on today's rules? The fastest way is a quick conversation.

👉 Talk it through with Renato: call or text (480) 307-4107, or get your free Home Buying Power Report →.

Frequently Asked Questions

What is down payment assistance? Down payment assistance (DPA) is help — usually money in the form of a grant or a second loan — that goes toward your down payment and/or closing costs. It works alongside your main mortgage and comes with program-specific rules on eligibility and repayment.

What down payment assistance is available in Arizona? Arizona's main statewide program is HOME Plus, run by the Arizona Industrial Development Authority. It provides 0–5% of your first mortgage toward your down payment and/or closing costs as a no-payment deferred second loan that's forgiven after 5 years, is available statewide year-round, and requires a homebuyer education course. Local, county, and lender programs may also be available. Program terms change over time, so confirm current options with a participating loan officer.

What's the difference between a DPA grant and a second loan? A grant may not need to be repaid (or is forgiven over time if you meet conditions like staying in the home for a set period). A second loan (often a deferred or "silent" second lien) is money you borrow that sits behind your first mortgage; some require payments, some are deferred, and some are forgiven over time. Arizona's HOME Plus assistance is a deferred, no-payment second lien that's forgiven after 5 years. Terms vary by program.

Do I have to be a first-time buyer to get down payment assistance in Arizona? Not always — some programs favor or require first-time buyers (often defined as not having owned a home in the past three years), while others are open to repeat buyers. Verify the current first-time-buyer rules for each program with a participating loan officer.

What is the income limit for Arizona down payment assistance? For HOME Plus, borrower(s) annual income must be no more than $155,386 (as of 4/6/2026). This figure is updated periodically by the Arizona IDA, so confirm the current limit on HomePlusAZ.com before relying on it. Other programs set their own limits.

Can I use down payment assistance with an FHA or VA loan? Yes — HOME Plus is designed to work with common low-down loan types, including conventional (3% down), FHA (3.5% down), and VA/USDA (0% down if eligible), and the assistance layers on top. Eligible loan types and overlays vary by program, so verify the current options with a participating loan officer.

Disclaimer: This content is general education, not a commitment to lend, an offer of credit, or a guarantee of eligibility. Down payment assistance program terms, income limits, and availability change and must be verified against current program sources. Eligibility for any loan or assistance program depends on your individual qualifications and program rules at the time you apply. NEXA Lending is an Equal Housing Opportunity lender. NMLS #1615600. Verify licensing at NMLS Consumer Access.

Video transcript

Think you need a 20% down payment to buy a home in Arizona, you probably don't. There are down payment assistance programs that can help qualify buyers with their down payment and even some closing costs. Depending on your situation, you may also qualify for low down payment loans with as little as 3% down on conventional, 3.5% on FHA or even zero down through VA or USDA programs if you're qualified. The key is knowing which program fits your situation because the guidelines can vary and change over time. That's where I come in. As a mortgage broker, I compare your options and help match you with a loan and assistance program that makes the most sense. Before you assume you can't afford to buy, let's see what's available. Book a call below.