Arizona Down Payment Assistance

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Posted by Troy Elston, REALTOR on May 10, 2023

How to Use Arizona Down Payment Assistance Programs to Buy a Home

If you’ve ever wondered if you could get help from Arizona Down Payment Assistance Programs, then please keep reading on.

These days it’s extremely difficult for first time home buyers to save up for a down payment. According to the 2017 Down Payment Report by Real Estate Economy Watch, it took 32 percent of first time home buyers more than two years to save up for a down payment. Not having a down payment saved is the number one barrier preventing most home buyers from buying a home.

Many first time home buyers never even try to buy a home because they don’t know what types of down payment assistance programs exist. In today’s guide, you’re going to learn about some of the most popular Arizona down payment assistance programs and what steps you can take to qualify for your own assistance!

What is Down Payment Assistance?

Down Payment Assistance AZ is one of the most helpful tools available to home buyers who don’t have enough money saved up to buy a home.

Over the last 20 years I’ve watched Arizona Down Payment Assistance Programs like Home in 5 and Home Plus provide wonderful opportunities for families to purchase their first homes when they otherwise would not be able to. In this guide I’ll be providing information on the two most popular programs out there for Arizona home buyers today.

The two most popular Arizona Down Payment Assistance Programs with first time home buyers are Arizona Home Plus and of course the Home In 5.

Here’s a quick overview of the guidelines for each on the down payment programs available in Arizona.

Home in 5 Down Payment Assistance Program Official Guidelines

down payment assistance home in 5
  • Available in: Maricopa County
  • Minimum Credit Score: 640
  • Maximum Income Amount: $122,100
  • Debt to Income Level Up to 50%
  • Maximum Purchase Price: $530,150 FHA,VA (No Limits for Conventional Loans)
  • Receive 3.0% or 4.0% down payment assistance on FHA and VA loans
  • Receive 1.0% to 7.0% down payment assistance on Conventional Loans

Home Plus Down Payment Assistance Program PDF

down payment assistance home plus
  • For Conventional Loans Only
  • Minimum Credit Score: 640
  • Maximum Income Amount: $125,351
  • Maximum Purchase Price FHA: $530,150
  • Maximum Purchase Price Conventional: $726,200
  • Maximum Debt to Income Level: 50%
  • Option to Receive 1% to 5% Down Payment Assistance Money

Can You Get Down Payment Assistance with a VA loan?

Yes. You can get down payment assistance with a VA Loan. The VA loan is a popular loan product that offers 100 percent financing. Because the VA government programs do not require the borrower to make a down payment, Home Plus for VA loans will provide you with closing cost assistance. As a result, there is little or no out of pocket for these types of loans.

To take advantage of the program in Maricopa County, you’ll need to Choose the Home in 5 Program for VA loans described below.

Home in 5 Down Payment Assistance Program for VA Loans

down payment assistance for a va loan
  • Down payment assistance of 3% is available when used with a VA loan
  • Minimum FICO score is 640
  • Maximum income, per program guidelines, of $92,984
  • Maximum purchase price of $371,936
  • Maximum debt-to-income of 45%
  • You must also meet the guidelines required to be approved for the VA loan

Will Down Payment Assistance Programs Run Out of Money?

Over the past few years, funds have been consistently available despite the constant warnings that they are limited. As a result, many Arizona home buyers have taken advantage of this program to buy a home.

One of the most significant changes to the Home Plus program in 2019 is the way funds are distributed. The Arizona Down Payment Assistance Programs have transformed from an immediate forgivable grant payment to a structured three-year, no interest, no payment soft second mortgage.

The good news is that this soft second loan is forgiven monthly up to a total term of 36 months. In other words, the soft second loan is completely forgiven after three years of the home purchase. Now, let’s assume you need to sell the home 24 months after the purchase. You would be responsible to repay 12 months of the soft second loan from your proceeds.

One other great feature is when money from the Home Plus Down Payment Assistance Program is combined with a government sponsored mortgage products such as Fannie Mae or Freddie Mac mortgages, the program can provide funding for up to 5% of the mortgage loan amount and be used towards down payment OR closing costs.

Mortgage Lenders Who Offer First Time Home Buyer Programs in Arizona

The best place for home buyers to start their home-buying process is with an experienced, local Realtor. A real estate agent will refer you to a trusted lending professional who is experienced in assisting buyers with finding the right mortgage programs offered. Here are two experienced loan officers who can assist you with obtaining a home loan today.

Tod Dianovich Loan Officer Guild Mortgage Company
Tod Dianovich, Loan Officer at Guild Mortgage | 602.705.5915

If you’re looking for absolutely one of the best loan officers in the Phoenix Area, look no further than Tod Dianovich. Tod has a solid record in closing and funding home purchases ahead of schedule with no surprises. Tod’s company, Guild Mortgage offers the highest level of service and a large selection of mortgage products to help you buy that home.

Nick Patullo loan officer at peoples mortgage 2055 E Centennial Cir Tempe AZ 85284
Nick Patullo, Loan Officer at Peoples Mortgage | 623.302.3178

When it comes to helping first-time home buyers, Nick Patullo from Peoples Mortgage is the first loan officer you need to talk to. Nick offers very competitive home interest rates and outstanding mortgage programs and service! Do you have a credit score under 600? Peoples Mortgage has the ability to approve borrowers with credit scores as low as 580.

In Conclusion

Waiting five years to save up for a down payment can cost you money. In the Phoenix market, home prices continue to rise by an average of 5 percent annually. Taking advantage of the Arizona Down Payment Assistance Programs allows you to buy your dream home today!

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Troy Elston is licensed Realtor in Phoenix Arizona. With over 20 years experience in real estate sales, Troy offers the highest degree of experience, service and integrity in the industry.
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