Arizona does have down payment assistance, and you don’t always have to be a first-time buyer to use it. The main options are the statewide HOME+PLUS program, Home in Five Advantage in Maricopa County, the state’s Arizona Is Home funding and city programs such as Phoenix’s Open Doors. Most of this help comes as a second loan rather than a true grant, so the terms deserve as much attention as the amount.
Here’s how assistance works, what each program offers at a high level and the trade-offs to weigh. For the loan options themselves, start with my first-time home buyer financing page.
What Is Down Payment Assistance?
Down payment assistance (DPA) is money toward your down payment, your closing costs or both. In Arizona, it usually comes from public housing finance authorities, including the state’s industrial development authorities (IDAs), the Arizona Department of Housing and some cities.
Assistance almost always comes packaged with a specific first mortgage: the program sets the first mortgage terms, the lenders who can offer it and the rules both loans follow. So you’re really evaluating two loans together.
The Common Forms of Down Payment Assistance
The word “grant” gets used loosely online. In practice, assistance comes in four main shapes, and the difference matters most when you sell or refinance.
Grants
A true grant doesn’t have to be repaid. Grants exist but are less common than search results suggest, and many articles call a forgivable loan a “grant” even though a lien is recorded on the home. Ask what’s recorded against the property and what happens if you sell early.
Forgivable second loans
The assistance is recorded as a second mortgage with no monthly payment, and it’s forgiven over a set period if you keep the home and the first loan. Some programs forgive the balance all at once at the end of the term; others forgive a little each month. If you sell or refinance before it’s fully forgiven, the remaining balance is typically due.
Deferred second loans
A deferred loan also has no monthly payment, but it isn’t forgiven (or only after a long period). The balance comes due when you sell, refinance or pay off the first mortgage.
Repayable second loans
Some programs offer assistance as a second loan with its own monthly payment. That adds to your housing cost and counts in your debt-to-income ratio, so it affects how much you qualify for.
How the second loan works with your first mortgage
The first mortgage is usually a 30-year fixed loan made under the program’s rules, with the assistance behind it as a second lien. The program sets the first mortgage pricing, which may differ from what the same lender offers without assistance. Programs also cap the combined loan amount, and the main Arizona programs won’t move their lien behind a new loan, so refinancing later means paying the assistance off.
Arizona Down Payment Assistance Programs to Know
Program details change often, so treat this as a map. I’ve left out dollar amounts, income limits and credit minimums on purpose: they vary by program, county and household size, and they change. I’ll confirm current terms for your scenario.
HOME+PLUS (statewide)
HOME+PLUS, often written Home Plus, is run by the Arizona Industrial Development Authority (Arizona IDA) and covers homes anywhere in Arizona. It pairs a 30-year first mortgage (FHA, VA, USDA or a conventional loan designed for housing agency programs) with help toward the down payment and closing costs. The program’s lender summary describes the assistance as a second mortgage loan, not a grant or gift, that is forgiven after a set number of years.
A few points stand out:
- You don’t have to be a first-time buyer.
- It’s for buying a primary residence, not for refinances or second homes.
- At least one borrower completes a homebuyer education course before closing.
- There’s a household income limit, and only lenders approved by the program can offer it.
You can read the program’s own overview at homeplusaz.com.
Home in Five Advantage (Maricopa County)
Home in Five Advantage is a partnership of the Phoenix and Maricopa County IDAs for homes in Maricopa County, which includes Phoenix, Scottsdale, Mesa, Tempe, Gilbert, Chandler and the part of Queen Creek inside the county line. It pairs a 30-year fixed FHA, VA or agency conventional loan with a choice of assistance structures: forgivable second loans with different terms, and a repayable second with monthly payments.
Per the program description, it’s for purchases only (through participating lenders), the home must become your principal residence shortly after closing, and all buyers complete an eight-hour homebuyer education course through an approved Arizona housing counseling agency. Most options don’t require first-time buyer status; one funded through the state’s Arizona Is Home effort does. Details are at homein5advantage.com.
If you’re looking in San Tan Valley or the Pinal County side of Queen Creek, Home in Five doesn’t apply, but statewide options still can.
Arizona Is Home (Arizona Department of Housing)
Arizona Is Home is a state initiative launched in 2024 by the Governor’s Office and the Arizona Department of Housing for first-time buyers. It’s delivered through local partners rather than one statewide application: in Maricopa County through Home in Five Advantage, in Pima County through the Pima County and Tucson IDAs, and in the remaining counties through the Arizona IDA.
In the counties the Arizona IDA serves, the assistance is a deferred second loan that isn’t forgivable and comes due on sale or refinance. Funding is set yearly, and the program pauses when it runs out: as of October 2026, the Arizona IDA has announced that its 2026 Arizona Is Home funds are exhausted and has pointed buyers to HOME+PLUS.
City of Phoenix Open Doors
The City of Phoenix runs Open Doors for first-time buyers purchasing within city limits and under the program’s income limit. It’s a deferred loan with no interest or monthly payment, forgiven after an affordability period; selling, refinancing or moving out during that period makes it due. It requires an education course plus one-on-one housing counseling, has a purchase price cap and depends on available city funds. See the City of Phoenix homeownership page for current details.
Other Valley cities and nonprofits offer programs from time to time, so I check what’s open when you’re ready rather than relying on an old list.
What happened to Pathway to Purchase?
If you’ve searched for Pathway to Purchase, you’ve likely found older articles. It was an Arizona Department of Housing program launched in 2016 with federal Hardest Hit Fund money, limited to targeted ZIP codes, with a final limited round in 2021. The U.S. Treasury reports that all Hardest Hit Fund programs had closed as of June 30, 2021, so it isn’t a current option.
Who Counts as a First-Time Home Buyer in Arizona?
Many programs use the federal definition: you haven’t owned a principal residence in the past three years. Under that test, you can count as a first-time buyer again even if you owned a home before.
Definitions vary by program, and some include exceptions. Arizona Is Home, for example, lists exceptions for qualified veterans and for purchases in federally targeted areas. And some programs, including HOME+PLUS and most Home in Five Advantage options, don’t require first-time buyer status at all.
How FHA, VA and Conventional Loans Pair With Assistance
FHA loans
FHA is a common pairing: its lower down payment requirement and flexible credit guidelines fit well with assistance toward the down payment and closing costs. FHA has its own rules on allowed secondary financing, and housing agency programs are built to meet them. More on FHA loans in Arizona.
VA loans
For eligible veterans and service members, VA loans often require no down payment, so assistance tends to help with closing costs instead. Both HOME+PLUS and Home in Five Advantage list VA among their first mortgage options. Sometimes a VA loan on its own, with closing costs covered by a seller credit, is simpler and costs less overall. See VA loans in Arizona.
Conventional loans
Programs use agency versions of conventional loans built for housing agency programs (Fannie Mae HFA Preferred and Freddie Mac HFA Advantage), which can come with reduced mortgage insurance for borrowers under certain income limits. Compare them with standard conventional loans before deciding. HOME+PLUS also lists USDA loans, which are limited to eligible rural areas.
The Trade-Offs to Weigh Honestly
Assistance can be the difference between buying now and spending years saving, but it has costs that aren’t obvious from the headline amount.
- Pricing and fees. The program sets the first mortgage rate, which can be higher than a comparable loan without assistance, and programs may add their own fees. Over time, a higher payment can outweigh the help.
- Repayment when you sell or refinance. Forgivable loans can be partly or fully due if you leave early, and deferred loans are due when you sell or refinance. Because the main programs won’t subordinate their lien, refinancing later generally means paying the assistance off.
- Homebuyer education. The main programs require a course before closing, so plan the time.
- Approved lenders only. Each program works only through its own approved or participating lenders.
- Limits on seller credits and cash back. Seller credits still follow the first mortgage’s limits, and assistance generally can’t put cash in your pocket at closing. A generous seller credit may make assistance unnecessary.
- Income, price and property rules. Expect income limits, sometimes purchase price caps and rules about occupancy and property type.
- Funding can run out. Some programs have yearly allocations and pause when they’re used up.
Sometimes assistance is clearly worth it. Other times, a gift from a relative, a seller credit or a slightly smaller loan does the job for less, depending on how long you’ll keep the home. Set your payment target first with my guide on how much house you can afford in Arizona.
Key takeaway: Down payment assistance is usually a second loan with its own rules, not a gift. Compare the full cost with and without it, including the rate, fees and what happens if you sell or refinance, before you decide.
How to Get Started
- Get pre-qualified. A short conversation about income, debts and savings shows which programs you might fit. You can get pre-qualified online.
- Plan around program rules. Income limits, education courses and lender requirements are easier to handle before you’re under contract, and the main programs require the course before closing.
- Compare both ways. I’ll lay out your payment and cash to close with and without assistance, side by side.
My role is to give you a straight answer. I’ll tell you which programs fit your scenario and how they’d work with the loan options I can offer, including when assistance isn’t the right tool. Programs work only through their approved lenders, so we’ll confirm that before you count on any help. For more on first-time buyer loans, see my first-time home buyer page.
