Forgivable grant
The assistance is structured as a "soft second" loan. If you stay in the home long enough (often 3, 5, or 7 years), it's forgiven — you owe nothing back.
The Arizona First-Time Homebuyer Guide
You don't have to wait years to save a down payment.
Arizona has more down payment assistance programs than most states — local AZ grants, county-specific options, and national programs that work statewide. Some are forgiven over time, some are repaid when you sell. The right one depends on your income, your zip code, and how long you'll stay in the home. We'll help you find it.
$50KUp to in some local programs
7Programs we work with
620FICO floor on most programs
Licensed in Arizona · NMLS #173855 · Equal Opportunity Lender
What is down payment assistance, in plain English?
Down payment assistance (DPA) is a grant or second loan that helps you cover the down payment, the closing costs, or both — usually delivered through a state, city, or non-profit program working with a participating lender (us, in this case).
Repayable second mortgage
The assistance is a real second loan you pay back monthly. Term is usually 10 years, rate slightly above the first mortgage. Cheaper rate on the first, but more total payments.
Deferred / due on sale
No monthly payments. The assistance sits as a silent second and is repaid only when you sell, refinance for cash-out, or stop occupying the home.
The honest tradeoff. DPA programs are typically funded by raising the rate on your first mortgage slightly — that rate premium is what pays for the assistance. Forgivable grants usually carry a higher rate; repayable seconds usually keep the first-mortgage rate lower but you carry a second payment. Sometimes saving your own down payment is the right call. Read when DPA isn't the best option →
Programs at a glance
Local Arizona programs vs. national programs
Local AZ programs typically offer the highest assistance amounts but have geographic limits and income caps. National programs work anywhere in Arizona and have no income limits, but offer smaller assistance percentages.
Arizona-specific programs
| Program | Where it works | Typical assistance |
|---|---|---|
| Home Plus | Statewide AZ (excl. Pima County in some configs) | Up to 5% of loan amount |
| Arizona Is Home | Statewide AZ (excl. Chino Valley) | Up to 5% of loan amount |
| Home In 5 | Maricopa County only | 3–6% of loan amount |
| Flagstaff CHAP | City of Flagstaff only | Up to $50,000 (10:1 match) |
National programs that work in Arizona
| Program | Forms available | FICO floor |
|---|---|---|
| Chenoa Fund | Forgivable + Repayable (FHA-focused) | 600 |
| Arrive Home | Forgivable + Repayable (3.5% or 5%) | 600 |
| Essex / NHF | Amortized + 3-year Forgivable | 600 |
Numbers are typical ranges across program guidelines. Your actual eligibility depends on FICO, income, location, and the loan program (FHA / VA / Conventional / USDA).
How it works
From "I'm not sure I can afford a house" to keys.
- 1
Free 20-min call
We talk about your income, your area of Arizona, your credit ballpark, and your timeline. No commitment.
- 2
Pre-qualify
We pull credit, run the math on a few programs side-by-side, and tell you which one works best for your numbers.
- 3
Homebuyer education
Most DPA programs require a HUD-approved homebuyer education course (online, often free, takes 4–6 hours). We'll point you at the right one for your program.
- 4
Find the home
You shop with a real-estate agent of your choice. We provide a pre-approval letter you can write offers with.
- 5
Close
The first mortgage and the DPA close together. You bring whatever's left after the assistance covers down payment + closing costs — sometimes that's $0 out of pocket.
Why work with us
A licensed lender, not a referral site.
Cornerstone First Mortgage is the actual mortgage bank originating your first mortgage. We're approved as a participating lender for the Arizona DPA programs we list — it's not a directory we curate from the outside. If you have a question about how a program actually works at the underwriting desk, we're the people answering it.
- Approved with all 7 programs on this site.
- In-house underwriting on the first mortgage.
- Honest tradeoff explanations — we'll tell you when DPA isn't the right call.
- Equal Opportunity Lender.
I thought I was 3 years away from buying. Mike walked me through Home In 5 in one phone call and we closed two months later with $4,000 of my own money — instead of the $25,000 I'd been saving toward.
R.M. — Phoenix, AZ · First-time buyer, age 28
FAQ
First-time buyer questions, answered straight
Do I have to be a first-time homebuyer?
For some programs yes (Flagstaff CHAP, parts of Home Plus). For others no (Home In 5 allows repeat buyers under specific rules; Chenoa, Arrive, and Essex have no FTHB requirement). HUD's definition of "first-time homebuyer" is broader than most people think — it just means you haven't owned a primary residence in the last 3 years.
What credit score do I need?
Most national DPA programs accept FICO 600+ on FHA loans. Arizona-specific programs typically require 620+. Lower scores usually mean tighter DTI requirements and slightly higher rates.
Will I owe the assistance back?
Depends on the program. Forgivable grants are written off after 3, 5, or 7 years of continued occupancy. Repayable seconds you pay monthly. Deferred ("silent second") are repaid only when you sell, refinance for cash-out, or stop using the home as your primary residence. Full breakdown of the tradeoff →
Are there income limits?
Local Arizona programs typically have income limits — Home In 5 caps at ~$153K, Flagstaff CHAP at ~150% AMI. National programs (Chenoa, Arrive, Essex) usually have no income limit, though pricing tiers may apply at higher income levels.
Is DPA always the right move?
No. DPA programs typically carry a slightly higher first-mortgage rate to fund the assistance. If you have most of your down payment saved already, taking a lower-rate conventional or FHA loan without DPA may save you more over the life of the loan. When NOT to use DPA →
Do I have to take homebuyer education?
Yes for most DPA programs. The course takes 4–6 hours, is usually online, and is often free. We'll point you at the specific HUD-approved course that satisfies your chosen program.
Ready to find out which program fits?
20 minutes on the phone. We'll model 2–3 programs against your real numbers and tell you the best path.