First-Time Home Buyer Programs in Arizona

Arizona Industrial Development Authority (AzIDA) Programs:

HOME+PLUS Home Buyer Down Payment Assistance Program:

Eligibility: Available to both first-time homebuyers (no homeownership in the last three years) and repeat buyers across all Arizona counties.
Offerings: Provides a 30-year fixed-rate mortgage with up to 5% down payment assistance for down payment and/or closing costs, combinable with FHA, VA, USDA, Fannie Mae, or Freddie Mac loans.
Requirements:

• Annual household income must not exceed $136,609.
• Minimum credit score of 640 (or 680 for manufactured homes or higher debt-to-income ratios).
• Debt-to-income ratio must not exceed 45% (50% with a 680+ score).
• At least one borrower must complete a homebuyer education course.

Arizona Is Home:

Benefits: Offers up to $30,000 for buyers at or below 80% of Area Median Income (AMI) or up to $20,000 for those between 81% and 120% AMI, as a silent second mortgage due on sale.
Eligibility: For first-time homebuyers (no homeownership in the last three years) in all counties except Maricopa and Pima.

Local Programs:

Maricopa County

Home in Five Advantage Program: Provides up to 6% of the loan amount as a forgivable second mortgage (no interest, forgiven after 3 years) for homes in Maricopa County; additional 1% for teachers, first responders, military, or income below $49,500.

Pima County/Tucson

Pima Tucson Homebuyer’s Solution Program: Offers up to 20% of the purchase price (minimum $1,000 buyer contribution) as a forgivable loan after 3 years for homes in Pima County; income must not exceed $126,351.

Phoenix

Open Doors Down Payment Assistance: Provides assistance (amount varies) through HUD-approved counseling agencies for first-time buyers in Phoenix; requires an 8-hour education course and one-on-one counseling.

Additional Information:

• Mortgage Credit Certificate (MCC): Allows a federal tax credit of up to $2,000 annually on mortgage interest for first-time buyers, veterans, or those in targeted areas; costs $500 upfront plus $100 annually.
• USDA and VA Loans: Zero-down payment options for rural areas (USDA) or veterans/active military (VA).
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).