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 Housing 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.
By county: Maricopa County DPA programs · Pima County DPA (Tucson) · Pinal County DPA programs
Arizona-specific programs
| Program | Where it works | Typical assistance |
|---|---|---|
| Home Plus | Every AZ county except Maricopa and Pima | Up to 5% of loan amount |
| Arizona Is Home | Every AZ county except Maricopa and Pima (excl. Chino Valley); Pima access via PTHS Advantage variant | Up to 5% of loan amount |
| Home In 5 | Maricopa County only | 3–6% (Advantage) or 4% fixed (Platinum) |
| Pima Tucson Homebuyer's Solution | Pima County + City of Tucson | Varies by variant — fixed-dollar up to $15,000 on Arizona Is Home joint product |
| Flagstaff CHAP | City of Flagstaff only | Up to $50,000 (10:1 match) |
| Cottonwood CHP & EAH | Verde Valley (Cottonwood employer) | Up to $40,000 (4:1 match) |
| Sedona SWHAP & EAH | Verde Valley (Sedona employer) | Up to $40,000 |
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
Down payment assistance eligibility — quick check
Five questions get you 80% of the way to knowing which Arizona DPA programs you fit. Walk through them before you start shopping for a home.
- What's your middle FICO score? Under 620 = Chenoa or Arrive only. 620-639 = most AZ HFA programs open up. 640+ = nearly every program available. 720+ = best pricing tiers.
- What's your household income vs. area median income (AMI)? Under 80% AMI = qualifies for the most generous programs (Home Plus 80% tier, Pima Tucson HBS, Flagstaff CHAP). 80-140% AMI = mid-tier programs. Over 140% AMI = limited to national programs without income caps (Chenoa, Arrive, Essex/NHF).
- Which Arizona county is the home in? Maricopa = Home In 5 + Home Plus. Pima = Pima Tucson Homebuyer's Solution + Home Plus. Flagstaff/Coconino = Flagstaff CHAP. Other AZ counties = Home Plus statewide.
- Are you a first-time homebuyer? HUD definition = no primary residence owned in the last 3 years. Some programs require it (Flagstaff CHAP, some Home Plus tiers). Some don't (Chenoa, Arrive, Essex).
- Are you a teacher, military, first responder, healthcare worker, or other public servant? Several Arizona programs include 1% bonus tiers within the program for public servants — these are part of one program, not a separate program added on top.
Bring those five answers to a 20-minute call and we'll point you at the right 2-3 programs immediately, rather than running through all 10. Or try the interactive DPA Program Matcher → — 60 seconds, illustrative shortlist of programs that likely fit your scenario.
Layering down payment assistance with your loan type
Most DPA programs are second mortgages or grants — they sit alongside your primary loan, not in place of it. Which primary mortgage you choose changes which DPA programs work, and how much money you net.
DPA + FHA (Full guide →)
The most common stack. FHA's 3.5% down requirement is small enough that DPA can cover all of it, plus most closing costs. Home Plus, Home In 5, Chenoa, Arrive, and Pima Tucson HBS all pair cleanly with FHA. Credit-score floor is typically 620. Mortgage insurance is required for the life of the FHA loan (unless you refinance later) — that's the trade-off for the smaller down payment.
DPA + VA (Full guide →)
VA loans already require zero down for qualifying veterans, so DPA layering is less common but still useful for closing costs and prepaid items. Home Plus does pair with VA in some Arizona counties. The VA funding fee is waived for veterans with a service-connected disability rating of 10% or higher — that combined with DPA can mean an effectively zero-out-of-pocket close. We cite VA Lender Handbook guidelines, not legal advice — talk to a VA-accredited counselor for VA-specific eligibility questions.
DPA + Conventional (Full guide →)
Conventional 3% loans (Fannie Mae HomeReady, Freddie Mac Home Possible) pair with DPA when income is at or below 80% AMI. Advantage over FHA: mortgage insurance drops off automatically at 80% LTV (FHA's stays for the life of the loan). For borrowers with strong credit who plan to build equity quickly, conventional + DPA is often cheaper over 7+ years even with the slightly larger initial DPA second.
DPA for teachers, nurses, and first responders in Arizona
Several Arizona DPA programs offer bonus assistance or dedicated tiers for public-service professions. The most relevant for Arizona buyers:
- Home In 5 Advantage — 1% public servant bonus. Maricopa County. Active military, K-12 teachers, sworn law enforcement, paid firefighters, EMTs/paramedics, and full-time hospital-based healthcare workers add 1% to the standard 4% Home In 5 grant — 5% total down-payment-plus-closing-cost assistance.
- Home Plus targeted tiers. Statewide Arizona. The program's lender network includes pricing tiers that vary by borrower type — some have favorable pricing for public-servant occupations under specific loan types.
- Teacher Next Door + Good Neighbor Next Door. Federal programs we can layer with DPA in eligible HUD-designated revitalization areas. Discount is 50% off list price on HUD homes in those zones for full-time K-12 teachers, law enforcement, firefighters, and EMTs.
If you're in one of these professions and we haven't talked about the bonus tiers yet, that's an open conversation worth having. The eligibility paperwork is straightforward but the program-by-program rules are specific.
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
Find the home
You shop with a real-estate agent of your choice. We provide a pre-approval letter you can write offers with.
- 4
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.
- 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 lender 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 Housing 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.