Arizona Down Payment Assistance
Arizona is home to the Grand Canyon, as well as hot, beautiful weather and several other parks and monuments. If you want to purchase a house in Arizona, you may be able to utilize a grant or down payment assistance offered by local or national organizations. Some of these organizations include Family Housing Resources (FHR), the Arizona Housing Finance Authority, and the Arizona Department of Housing.
If you're thinking about purchasing a home in Arizona, you may have options to help with the down payment or closing costs. Click on any program below to learn more and see if it can help with your home purchase!
HOME Down Payment Assistance Program
The HOME Down Payment Assistance Program is offered by Family Housing Resources (FHR). An amount of 3.5% of the purchase price (or $3,700, whichever is less) is offered to qualified applicants. This can be used for prepaid items, closings costs, or the down payment. The property being purchased must be in Pima County, Tucson, and must be the homebuyer’s primary residence. The purchase price cannot be more than the appraised value, must be inspected, and must meet HUD and local code standards.
In order for a homebuyer to be eligible, they must not have a debt-to-income ratio of more than 45%, must not exceed $10,000 in liquid assets (after contributing to the property purchase), must pay at least $1,000 towards the down payment, must disclose their annual household income, and must complete a Homebuyer Education Class. Further, applicants must not owe money to the City of Tucson for either Section 8 or Public Housing, and must have a minimum of one month’s mortgage payment at the time of closing.
Created by the Arizona Housing Finance Authority (AzFHA), the HOME Plus Program is a fixed-rate 30-year home loan that also offers down payment and closing cost assistance. This assistance (for up to 5%, or up to 6% for eligible military, Veterans, and National Guard personnel) is offered in the form of a second mortgage with 0% interest and a three-year loan term. The loan is forgiven over the term at a rate of 1/36 for every month.
In order to qualify, potential borrowers must meet certain income limits (as of 2022, they cannot exceed $112,785.00). They also must complete a homebuyer education course. The property being purchased must be the applicant’s primary residence, and be in Arizona.
As the allocation of funding is limited, this program may change at any time and priority will be given to those who apply first.
Pathway to Purchase Down Payment Assistance
The Pathway to Purchase (P2P) Down Payment Assistance program was developed by the Arizona Department of Housing (ADOH) and the Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC). It’s specifically meant for people who have had foreclosures and are looking to purchase homes in certain cities, which are Bull Head City, Casa Grande, Glendale, Green Valley, Kingman, Phoenix, Rio Rico, Sahuarita, Sierra Vista, Tucson, Vail, and Yuma.
Through this program, eligible borrowers are offered a fixed-rate, 30 year mortgage, as well as down payment assistance offered in the form of a second mortgage. This second mortgage, for up to $20,000, has a term of 5 years and a 0% interest rate.
In order to be eligible for P2P Down Payment Assistance, interested applicants must be using the house as their primary residence, must not have an annual income of more than $92,984, and must complete an approved homebuyer education course prior to closing. P2P Down Payment Assistance is only available for Fannie Mae HFA Preferred Mortgages, and the purchase price of the house cannot exceed $371,936.
Income and purchase price limits are valid as of 2020. These limits may change and should be verified by the consumer.
Pima Tucson Homebuyer’s Solution Program
Through the Pima Tucson Homebuyer’s Solution Program, qualified borrowers can receive a fixed-rate 30-year mortgage. In addition to the mortgage, applicants can also receive assistance for closing costs, down payment, or prepaid items for up to 3, 4, or 5% of the loan amount. This assistance does not need to be repaid and has no recapture tax.
In order to be eligible, applicants have to have qualifying credit, meet all guidelines from FHA, VA, USDA, and Freddie Mac, and complete a homebuyer education course. Applicants must also not have an annual household income of more than $84,840 for FHA, VA, and USDA loans, or an annual household income of more than $90,900 for conventional loans (as of 2022). Both first-time and repeat homebuyers are eligible for the Pima Tucson Homebuyer’s Solution Program.
The property being purchased must be in Pima County and Tucson, and be the homebuyer’s primary residence. Properties can have up to four units, and this also includes condominiums and townhouses.