Arizona Down Payment Assistance Programs
Below you will find the information you need to know about the best Arizona down payment assistance programs.
Lack of cash to buy a home is the biggest obstacle to homeownership for many first time home buyers in Arizona. We can help.
What Down Payment Assistance Programs are Available in Arizona?
Here are the most popular down payment assistance programs in Arizona. These programs help Arizona first time home buyers obtain the benefits of homeownership. Click on the program name for program details.
| Program Name | County Available | Minimum Credit Score |
| DPA Advantage- AFR | All Counties | 620 |
| FHA Within Reach DPA | All Counties | 640 |
| 100% Down Payment Assistance Program- Essex | All Counties | 660 |
In addition to these down payment assistance programs, first time home buyers in Arizona may be able to take advantage of zero down home loan programs such as VA or USDA loans and low down mortgage programs like FHA and the
We offer complete information that explains how to buy a house in Arizona using the best down payment assistance programs available. We help you find the best option to fit your needs.
We answer the following questions:
- What down payment assistance programs are available in Arizona?
- What is down payment assistance and where does it come from?
- How does down payment assistance work?
- How much down payment assistance can I get?
- How do I qualify for down payment assistance in Arizona?
Our goal is to help Arizona first time home buyers buy a home with as little out of pocket as possible.
What is Down Payment Assistance?
First of all, it’s good to know what a down payment is. A down payment is an upfront payment that you make when you are buying your home. This is an amount that the mortgage company expects you to pay out of pocket instead of borrowing. Depending on the loan program that you get, your down payment requirement can range between 0% down and 20% down.
Here is an example of how the different down payment options break down if you want to buy a home in Arizona that costs $200,000.
| Down Payment % | Amount Down | Loan Amount |
| 0% down | zero | $200,000 |
| 3% down | $6000 | $194,000 |
| 5% down | $10,000 | $190,000 |
| 10% down | $20,000 | $180,000 |
| 20% down | $40,000 | $160,000 |
It’s also important to know that there are other closing costs that you have to pay upfront when buying a home. If you don’t have money for this and you want to buy a home, what options do you have? Fortunately, down payment assistance is a great resource that is available for Arizona first time home buyers.
Down payment assistance is when all or part of your down payment (and other costs) is provided by an organization so that you don’t have to come up with the money yourself. You can keep your money for a rainy day or to help pay for other costs that come with buying a home.
Where Does Down Payment Assistance Come From?
The most common organizations that offer down payment assistance are usually nonprofit charities, the government (local, state or national), state-charted agencies designed to meet affordable housing needs, and other entities. In Arizona, the most popular down payment assistance programs are directed by the Arizona Department of Housing or local Industrial Development Authorities (IDAs) that have been created by Arizona state law.
Arizona first time home buyers usually receive the following types of down payment assistance:
Second mortgage loans: The most common down payment source, these have low or no interest rates and the payments are deferred – or even forgiven – over a specific time period.
Grants: Funds that you do not need to pay back as long as you own and live in your home for a specific period of time.
Tax credits: Certain states and local governments, including Housing Finance Agencies, issue mortgage credit certificates which reduce the amount of income tax you pay. This gives you more available income upfront to make your down payment or pay for closing costs.
It should also be mentioned that real estate and mortgage professionals can help you by offering discounted fees or even paying for some of your closing costs.
How Does Down Payment Assistance Work?
When you have figured out how much you are going to buy and how much your initial mortgage will be, you will know how much you will need for a down payment. You can obtain some or all of that amount using the down payment assistance programs. Each of Arizona’s down payment assistance programs offers different options for
How Much Can You Get and How Do You Qualify for Down Payment Assistance?
If you want down payment assistance in Arizona, how do you get it? Most (if not all) of the organizations that offer down payment assistance in Arizona do not accept direct applications. Instead, Arizona’s down payment assistance programs are offered through a pool of approved lenders. So, if you want down payment assistance, you have to first talk to an approved loan officer and they will help you obtain the money you need to buy your home.
The reason that you talk to a loan officer first is because that is how down payment assistance works in Arizona. The loan officer is the person that will talk to you and determine the following:
- How you much qualify to buy;
- What is the best loan program that you can get that accepts down payment assistance and
- How much down payment assistance you can get.
The loan officer will work with you from that point until you buy the home and they will arrange for the down payment assistance to be provided at the time of closing.
You might find out that, based on your personal situation, the amount of assistance that you are eligible to receive is less than the total amount that you need in order to buy the home that you choose. If that is the case, your loan officer will work with you and tell you what you can and should do in order to come up with the difference. The good news is that this out of pocket amount is typically about the same as what you would pay for a deposit and rent if you were going to rent a home or apartment.
Advantages of Down Payment Assistance Programs
DPA Advantage- AFR
DPA Advantage is a down payment assistance program offered by American Financial Resources, Inc. It is designed to provide down payment assistance in the form of a grant equal to 2% or 3.5% of the purchase price. It is available to a wide variety of eligible borrowers. It can be used with the FHA 203(b) program, any of their FHA Renovation programs, as well as the FHA OneTime Close Construction-to-Permanent program (excluding 3.5% grant).
DHA Advantage Highlights:
- First Time Home Buyers
- Any borrower on the loan application who is a current, retired, volunteer, non–paid, or plan to become:
- First-responders (police officer, firefighter, public safety officer, paramedic, emergency medical technician (EMT), including volunteers, or similar)
- Educators
- Medical personnel (nurse, doctor, phlebotomist, health ambassador, or hospital, American Red Cross worker, or similar)
- Civil servant in a federal, state, or local municipality
- Military personnel
DPA Advantage Program Requirements:
- Minimum qualifying credit score: 620
- Total borrower’s income is equal to or less than 140% of median area income
- Go to the Area Median Income Lookup Tool to determine your AMI
- Eligible properties located in an underserved census tract
- Go to the Zip Code Lookup Tool to determine eligibility
FHA Within Reach DPA
The Within Reach™ 2.0 FHA Down Payment Assistance Program is another down payment assistance program that first time home buyers can use to buy a home in Arizona. This program is offered exclusively from Land Home Financial Services, Inc. (LHFS).
The Within Reach™ 2.0 FHA Down Payment Assistance Program (DAP) is a competitively priced government loan program that does not require a minimum down payment from the homebuyer(s). Within Reach™ 2.0 FHA provides borrower(s) with a choice of a 3%, 4%, 5%, or 6% DAP. This home loan program is a purchase money first lien mortgage with down payment assistance in the form of a subordinate soft second lien with a 0.00% interest rate, as a 5-year term, forgiven at month 61. Borrower(s) must remain current on their mortgage for the second mortgage to be forgiven.
The down payment assistance program is a great option to help when you have been unable to save a sufficient amount for a down payment and do not have any other resources available for down payment assistance.
The Within Reach™ 2.0 FHA Down Payment Assistance Program Highlights:
- Choice of a 3%, 4%, 5%, or 6% Down Payment Assistance
- The program allows down payment and closing costs to be covered by the down payment assistance program
- Manufactured Housing eligible through the Within Reach FHA MH Program
The Within Reach™ 2.0 FHA Down Payment Assistance Program Requirements:
- 640 Minimum credit score
- Income limit is 160% of Area Median Income (AMI) or maximum allowable by FHA. Limit is based on qualifying income used for the transaction, not household income.
- Borrower must occupy the residence as their primary residence within 60 days of closing.
- One Home Buyer must complete a home buyer education course before closing.
100% DOWN PAYMENT ASSISTANCE PROGRAM – ESSEX
If you find yourself short in terms of a down payment, but are still interested in purchasing a home this program may be for you! Essex Mortgage offers a program called the 100% Down Payment Assistance Program and the name says it all! It is a down payment assistance (DPA) loan that provides 100% financing and requires 0% down payment (although closing costs are still required). This is done by getting a 1st and a 2nd mortgage. The amount of the 2nd mortgage for a FHA loan is 3.5%. The term for the 2nd is 10 years.
100% Down Payment Assistance Program Highlights:
- Great for first time homebuyers and/or homebuyers with less than perfect credit.
- ZERO down payment
- No income restrictions
- Low mortgage insurance adjustments
- No income limitations
- Competitive interest rate on the 2nd
100% Down Payment Assistance Program Requirements:
- Min FICO score 660
- Has to be owner occupied
- DTI Ratios: 50%
- One Home Buyer must complete a home buyer education course before closing
