Get Help With Your Down Payment Needs
If you’re looking for down payment assistance in Arizona, we have great news! The Arizona Department of Housing offers two DPA programs for first time property purchasers who need help coming up with the funds for the down payment.
One programs is called the “HOME Plus Home Loan Program,” and provides a down payment assistance (DPA) grant ranging from 2% – 5%. From the state of Arizona website:
The Arizona Department of Housing, seeks to provide assistance to creditworthy renters who can qualify for a mortgage but lack the resources for the down payment. The HOME Plus Home Loan Program provides an attractive 30-year fixed-rate mortgage with a down payment assistance (DPA) grant that can be used toward the down payment and / or closing costs.
DPA is a non-repayable grant for down payment and closing costs, equal to a percentage of the initial principal balance of the mortgage loan. DPA is only available in conjunction with a HOME Plus loan. Qualified U.S. Military Personnel may receive an additional 1% on ANY mortgage type.
HOME Plus Program Highlights:
- Mortgage for the purchase of an Owner occupied, Primary Residences in Arizona.
- Borrower(s) Income not to exceed $92,984.
- Purchase Price limit not to exceed $371,936.
- Each borrower must complete a homebuyer education course before closing. The homebuyer education requirement may be met by taking a pre purchase course through an internet-based program developed by mortgage insurance companies, or through another HUD-approved homebuyer education provider. For more details, see the last page of the HOME Plus Participating Lender document.
The other program is called the “Pathway to Purchase Down Payment Assistance Program,” and provides a down payment assistance second mortgage equal to 10% of the purchase price, up to a maximum of $20,000. From their website:
Pathway to Purchase Down Payment Assistance
The Arizona Department of Housing (ADOH), in partnership with the Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC), provides down payment assistance to qualified homebuyers purchasing a primary residence in 17 targeted municipalities in Arizona. The assistance is an incentive to purchase in targeted housing markets that have been hardest-hit by foreclosures.
The Pathway to Purchase (P2P) Down Payment Assistance Program provides an attractive 30-year fixed-rate mortgage with a Down Payment Assistance (DPA) second mortgage equal to * 10% of the purchase price. The DPA second mortgage is a five–year forgivable lien against the subject property at a 0% interest rate and no required monthly payments. The down payment assistance (DPA) can be used toward the down payment and / or closing costs. DPA is only available in conjunction with a P2P first mortgage and is funded by the AHFPFC at the mortgage loan closing.
Pathway to Purchase Program Highlights:
- Mortgage for the purchase of an Owner occupied, Primary Residences in targeted areas.
- Borrower(s) Income not to exceed $92,984.00
- Purchase Price limit not to exceed $371,936.00
- Existing, previously occupied properties only, new construction, including spec homes are not allowed.
- The DPA provided is 10% of the purchase price * up to a maximum of $20,000.
- Fannie Mae HFA Preferred mortgages only.
- The P2P Program is strictly limited to the following 17 Cities:
Arizona City, Avondale, Buckeye, Casa Grande, Coolidge, Douglas, El Mirage, Fort Mohave, Goodyear, Huachuca City, Laveen, Maricopa, Red Rock, Sierra Vista, Snowflake, Yuma.
Tucson – The Industrial Development Authority of the City of Tucson will administer the Pathway to Purchase DPA Program in Tucson. Homebuyers interested in the Pathway to Purchase in the City of Tucson and the City of South Tucson need to visit http://www.ehousingplus.com/available-programs/arizona/ida-pima-tucson/pt_p2p/.
If a homebuyer needs down payment assistance for a City not listed above, or the home is new construction, please see the HOME Plus Program.
More Arizona Down Payment Assistance
In addition to these statewide programs, you should also check to see if there are local programs offered in Arizona that provide additional help that can be applied toward your down payment.