Arizona
Down Payment
Assistance Guide
A complete guide to programs that help you buy a home with little or no down payment
Sanchez Group
Jesus Sanchez — Real Estate Agent
(480) 531-0428
contact@realsanchez.com • realsanchez.com
01 What Is Down Payment Assistance?
Down Payment Assistance (DPA) programs are funds offered by state and local governments or approved entities to help home buyers — especially first-time buyers — cover the upfront costs of purchasing a home.
How much money can you receive?
Depending on the program, you can receive between $5,000 and $20,000+ in assistance. Some programs cover up to 5% of the home price. This money can be used for:
- Your down payment
- Closing costs
- A combination of both
Do I have to pay it back?
It depends on the program:
- Grant: You do NOT pay it back. It's free money.
- Forgivable second mortgage: Forgiven after living in the home for a set period (e.g., 3 years)
- Deferred second mortgage: Repaid when you sell or refinance, but no monthly payments
Jesus's tip: Many families don't know these programs exist. I've helped dozens of families buy their home using these funds. The first step is finding out if you qualify — and I'll help you for free.
02 Home Plus Arizona
Home Plus — Arizona Industrial Development Authority
Up to 5% of the home price
Arizona's most popular down payment assistance program.
Key requirements
- Minimum credit score: 640 for conventional, 640 for FHA
- Maximum income: Varies by county (typically $112,785 for 1-2 person households in Maricopa/Pinal)
- Maximum home price: Varies by county
- First-time buyer: NOT required (unlike other programs)
- Occupancy: Must be your primary residence
- Education course: Homebuyer education course required
How it works
Home Plus provides a second mortgage at 0% interest that is forgiven after 3 years. This means if you live in the home for 3 years, you don't have to pay anything back.
Example with a $300,000 home
| Item | Without Home Plus | With Home Plus (5%) |
|---|
| FHA down payment (3.5%) | $10,500 | $10,500 |
| Home Plus assistance | $0 | -$15,000 |
| Your out-of-pocket | $10,500 | $0 * |
* Remaining assistance can be applied to closing costs.
Key fact: Home Plus is one of the few programs that does NOT require you to be a first-time buyer. Even if you've owned a home before, you may qualify.
03 Pathway to Purchase
Pathway to Purchase — City of Phoenix / Home in Five
Up to $20,000 in assistance
One of the most generous programs available in the Phoenix metro area.
Key requirements
- Minimum credit score: 640
- Maximum income: 80% of area median income (AMI)
- Location: Home must be within program boundaries
- First-time buyer: Yes, required (no homeownership in the last 3 years)
- Occupancy: Primary residence
- Education course: Required
How it works
Pathway to Purchase offers up to $20,000 as a forgivable second mortgage. It's gradually forgiven over 3 years. If you sell before that, you must repay the unforgiven portion.
Note: This program has limited funding and can run out. If you qualify, it's important to act fast. I'll connect you with an approved lender to get started immediately.
Can I combine programs?
In some cases, you can combine assistance from different sources. For example, you can use an FHA loan with Home Plus assistance. However, you typically cannot stack two DPA programs together. Your lender will help determine the best combination for your situation.
04 Federal Government Loans
FHA — Federal Housing Administration
FHA Loan
Only 3.5% down payment
- Minimum credit: 580 (3.5% down) or 500 (10% down)
- Maximum DTI: up to 56.9% with compensating factors
- Mortgage insurance (MIP): required for the life of the loan
- Best for: first-time buyers with moderate credit
VA — Veterans Affairs
VA Loan
0% down payment
- Exclusive to veterans, active military, and eligible spouses
- No monthly mortgage insurance (PMI)
- No price limit (subject to qualification)
- One of the best loan options available on the market
USDA — U.S. Department of Agriculture
USDA Loan
0% down payment
- For eligible rural and suburban areas
- Casa Grande, Coolidge, Maricopa, and Eloy all qualify
- Maximum income: 115% of area median income
- Competitive interest rates
Jesus's tip: If you're looking to buy in Casa Grande or Maricopa, the USDA loan may be your best bet — 0% down payment and no strict price limit. Many of my clients have used this program successfully.
05 Program Comparison Table
Here's a side-by-side summary so you can compare easily:
| Program |
Down Payment |
Min. Credit |
First-Time? |
Type of Help |
| Home Plus AZ |
Up to 5% assistance |
640 |
Not required |
Forgivable 2nd mortgage (3 yrs) |
| Pathway to Purchase |
Up to $20,000 |
640 |
Yes |
Forgivable 2nd mortgage (3 yrs) |
| FHA |
3.5% |
580 |
Not required |
Low down + can combine with DPA |
| VA |
0% |
No official min. |
Not required |
No down payment, no PMI |
| USDA |
0% |
640 (typical) |
Not required |
No down payment, rural areas |
Which program is best for you?
If you're a veteran or active military: VA is almost always the best option. 0% down payment and no monthly mortgage insurance.
If you're buying in a rural area (Casa Grande, Coolidge, Maricopa): USDA offers 0% down with excellent rates.
If you have 640+ credit and want assistance: Home Plus gives you up to 5% of the home price that you don't have to repay after 3 years.
If your credit is between 580-639: FHA is your best option with only 3.5% down.
06 Real Example: The Martinez Family
Success story: The Martinez family bought their first home in Casa Grande using a combination of an FHA loan + Home Plus. Here are the real numbers:
| Detail | Amount |
|---|
| Home price | $285,000 |
| Loan type | FHA (3.5% down) |
| Required down payment (3.5%) | $9,975 |
| Home Plus assistance (5%) | -$14,250 |
| Out-of-pocket for down payment | $0 |
| Remaining applied to closing costs | $4,275 |
| Remaining closing costs | ~$3,500 |
| Monthly payment (P&I + insurance + taxes) | ~$2,150/mo |
Monthly payment breakdown
| Component | Monthly |
|---|
| Principal & interest | $1,580 |
| Mortgage insurance (MIP) | $165 |
| Property taxes | $215 |
| Homeowner's insurance | $120 |
| HOA | $70 |
| Total | $2,150 |
Jesus's tip: The Martinez family thought they needed $30,000 to buy. With the right programs, they bought with less than $4,000 out of pocket. Your story could be similar.
07 Your Next Steps
Now that you know the programs available, here's your action plan:
Step 1: Free evaluation
Call me or send a message. I'll do a quick evaluation to determine which programs apply to your situation. No obligation, no cost.
Step 2: Lender connection
I'll connect you with a local bilingual lender who knows all of Arizona's programs. They'll get you pre-approved.
Step 3: Home search
With your pre-approval and assistance program identified, we start looking for your ideal home.
Step 4: Offer and closing
I'll guide you through every step of the process until you have the keys in your hands.
Did you know? 67% of first-time buyers in Arizona don't know they qualify for down payment assistance. Don't be part of that statistic. Take the first step today.
Contact Jesus Sanchez
(480) 531-0428
contact@realsanchez.com
realsanchez.com
I speak English and Spanish. 100% free consultation.