Stacking Arizona down payment assistance with a VA loan — what actually works
VA loans already finance 100% of the purchase price. So why would a Veteran need down payment assistance? Closing costs. Reserves. And a few Arizona programs do still let you stack — but most won't.
Which Arizona DPA programs allow VA first mortgages?
Most of the big Arizona programs were built around the agencies that buy the loans on the secondary market. Home Plus, Home in Five Advantage, and the other AZ programs pair with conventional, FHA, or USDA loans because that's what their bond structure permits. One thing worth correcting up front: Home Plus actually does list VA as an eligible first mortgage. Home in Five and HomeReady AZ do not. Where a program excludes VA, it's not prejudice — VA loans simply don't fit that bond program's investor channel. Check the current DPA figures for the income caps and assistance percentages before you assume eligibility.
Pathway to Purchase used to be the practical exception here, but it is suspended and out of funds as of June 22, 2026, so it is not an option right now. It was a legacy Hardest-Hit Fund program that provided down payment and closing-cost assistance in designated cities. For Veterans today, Home Plus pairs with VA loans statewide and adds an extra 1% in assistance.
Smaller city and county programs (Tucson HOME, Pinal Workforce, Yuma Homebuyer) sometimes allow VA. Always ask before you write an offer.
When a Veteran actually needs DPA
If you have full entitlement and you're buying under the county loan limit, you don't need down payment help. You need closing-cost help — and that's a different bucket.
Typical closing costs on a $400K Arizona VA purchase run $8,000 to $12,000 before lender credits. Some of that the seller can pay (up to 4% in concessions on a VA loan). Some can be financed into your funding fee if you're not exempt. The rest is the gap a closing-cost grant fills.
What to ask a lender before applying
- Does this DPA program list VA as an eligible first-mortgage type?
- Is the assistance forgivable, deferred, or amortizing?
- Will the second mortgage subordinate to a VA IRRRL refinance later?
- How does the DPA second affect my debt-to-income calculation?
- Does the program have a recapture period if I sell within 5 years?
Common questions
Can a Veteran use Home Plus with a VA loan?
Yes. Home Plus lists VA as an eligible first mortgage, alongside FHA, conventional, and USDA. Home Plus is statewide, covers all Arizona counties, and adds an extra 1% of assistance for Active Duty military and Veterans, up to 5% total. See the current DPA figures for the income limits and FICO floor.
How much down payment assistance can a Veteran get?
Home Plus gives up to 4%, plus an extra 1% for Active Duty and Veterans, for up to 5% total statewide. In Maricopa County, Home in Five gives up to 5%, plus 1% for military and Veterans, plus a 0.5% boost, for up to 6.5%. On a $400,000 VA purchase that's roughly $20,000 to $26,000 toward closing costs and prepaids.
Do you have to pay back Arizona down payment assistance?
Usually not. Home Plus and Home in Five assistance is a forgivable or deferred soft second with no monthly payment, so the lien sits quietly behind your VA first mortgage. Some city and county programs use a recapture period if you sell early. Always ask whether the help is forgivable, deferred, or amortizing before you apply.
What credit score and income limits apply?
You need a 620 FICO for Home Plus and 640 for Home in Five, even though a VA loan on its own can go lower. Home Plus borrower income is capped at $146,503 when paired with a VA loan. Home in Five caps household income at $157,360 as of June 10, 2026. Check the current DPA figures for updates.
Does the VA funding fee waiver mean I don't need DPA at all?
If you're 10%+ service-connected disabled, the funding fee is waived. That alone removes 1.25–3.3% of the loan amount from your closing costs. Many Veterans we work with don't need additional DPA once that's applied. Mike will tell you straight when assistance isn't the right move for your scenario.
Can I get DPA for my second VA loan after a PCS move?
Sometimes. You don't have to be a first-time buyer, since both Home Plus and Home in Five allow repeat buyers. If you have remaining entitlement and the new market lets you use partial entitlement, some city or county DPA programs will still help with closing costs. The HFA-bond programs work too, as long as you meet the income caps.
Does Pathway to Purchase still work in 2026?
No. Pathway to Purchase is suspended and out of funds as of June 22, 2026, so it is not accepting new applications. It was a legacy program funded through the federal Hardest-Hit Fund, and that allocation has been exhausted. Use Home Plus statewide or Home in Five in Maricopa County instead, both of which pair with VA loans and add an extra 1% for Active Duty members and Veterans.
How Mike + Cornerstone help
I walk through your VA entitlement, your county loan limit, and the actual closing-cost gap before recommending a DPA pairing. If you don't need DPA, I'll tell you. If a city program fits better than an HFA program, I'll tell you that too.
Talk to Mike first Get pre-approved
No pressure, no commitment. Free 20-minute consult. Mike will look at your scenario and tell you straight whether this works for you.