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.
See all current Arizona DPA figures (last verified June 21, 2026) →
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
640FICO floor on AZ DPA 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 | Statewide Arizona (we route Phoenix to Home in Five, Tucson to PTHS) | Up to 5% of loan amount (4% + 1% qualified) |
| 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 Five | Maricopa County only | Up to 6.5% assistance (Advantage) or up to 4% (Platinum) — max household income up to $157,360 |
| 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 Five + 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 Five, 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 Five Advantage — public servant bonus. Maricopa County. Active military, K-12 teachers, sworn law enforcement, paid firefighters, EMTs/paramedics, and full-time hospital-based healthcare workers qualify for additional assistance — bringing total assistance up to 6.5% of loan amount. Maximum household income up to $157,360.
- 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 Five 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 you have to pay back down payment assistance in Arizona?
Usually no, with the two main Arizona programs. Home Plus and Home in Five both fund a forgivable or deferred soft second with no monthly payment — you repay only if you sell or refinance early. Some Arizona options are structured as repayable seconds you pay monthly, and Flagstaff CHAP and the Verde Valley programs have their own terms. Full breakdown of forgivable vs. repayable →
How much down payment assistance can I get?
You can get up to 5% of the loan amount with Home Plus statewide (4% plus 1% for Active Duty and Veterans) or up to 6.5% with Home in Five in Maricopa County (5% plus 1% for public servants plus a 0.5% boost). A few local programs go higher in fixed dollars — Flagstaff CHAP reaches $50,000. The right amount depends on your county, income, and loan type.
What credit score do I need for Arizona down payment assistance?
You need a 640 credit score for the Arizona DPA programs — both Home Plus and Home in Five set the floor at 640. FHA on its own allows scores down to 580, but layering DPA on top raises the minimum to 640. The national programs (Chenoa, Arrive, Essex) accept lower scores, typically from 600.
What are the income limits for Arizona DPA?
Home Plus caps borrower income at $155,386, or $146,503 when paired with an FHA, VA, USDA, or conventional HFA loan. Home in Five caps household income at $157,360 as of June 10, 2026. National programs (Chenoa, Arrive, Essex) usually have no income limit. See all current Arizona DPA figures →
Do I have to be a first-time homebuyer?
No, not for many Arizona programs. Home Plus and Home in Five both allow repeat buyers. "First-time homebuyer" under HUD's definition just means you haven't owned a primary residence in the last 3 years, so plenty of past owners still qualify. Flagstaff CHAP and a few tiers do require first-time status, so the answer depends on the specific program.
Home Plus vs. Home in Five — which is better?
Home Plus works statewide and gives up to 5%; Home in Five works only in Maricopa County and gives up to 6.5%. If your home is in Phoenix, Mesa, Scottsdale, or anywhere in Maricopa, Home in Five usually wins on assistance amount. Outside Maricopa, Home Plus is the statewide answer. Both set a 640 score floor and both allow repeat buyers.
Can I combine two down payment assistance programs?
No. Arizona DPA programs do not stack with each other — you use one program per purchase. What does layer is the DPA with your first mortgage: a single program like Home Plus or Home in Five sits alongside your FHA, VA, USDA, or conventional loan. Trying to combine two assistance programs is not allowed under program guidelines.
Does DPA work with FHA, VA, USDA, or conventional loans?
Yes, all four. Arizona DPA pairs with FHA, VA, USDA, and conventional first mortgages. FHA is the most common stack because its 3.5% down is small enough for DPA to cover. VA already requires zero down, so DPA there helps with closing costs. Veterans get an extra 1% on Home Plus. See loan-type pairing guides →
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, a lower-rate conventional or FHA loan without DPA may save you more over the life of the loan. We'll tell you when down payment assistance isn't the best call. When NOT to use DPA →
Do I need a homebuyer education course?
Yes for most DPA programs. The course runs about 4 to 8 hours, is usually online, and is often free or runs $50 to $100. We'll point you at the specific HUD-approved course that satisfies your chosen program, so you finish it once and it counts.
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.