Down payment assistance with a VA loan in Arizona — when it makes sense
If you have full VA entitlement and you're under the county loan limit, you don't need DPA for the down payment. You need closing-cost help. Different programs solve different problems.
Why most Veterans don't need DPA
VA loans finance 100% of the purchase price up to the county loan limit. In Maricopa County, that's $832,750 for 2026 (see our current DPA figures page for the rest). So if you're buying a $475K house with full entitlement, you write $0 down. There's nothing for a 'down payment assistance' program to help with.
What you still need to cover: closing costs (origination, title, escrow, recording, prepaid taxes/insurance, funding fee unless waived). On a $475K purchase, that's typically $9,000–$12,000. The seller can pay up to 4% in concessions. The rest is the gap.
AZ programs that pair with VA — and the ones that don't
| Program | Allows VA? | What it helps with |
|---|---|---|
| Home Plus | Yes | VA is an eligible first-mortgage type; 1% bonus for Active Duty and Veterans |
| Home in Five | Yes | VA eligible; 1% qualified-buyer bonus includes military and Veterans |
| Pathway to Purchase (suspended as of June 2026) | — | Legacy Hardest-Hit Fund program; out of funds, not accepting applications |
| Pima/Tucson HOME | Sometimes | Closing costs + sometimes DP gap |
| Yuma Homebuyer Assistance | Yes | Closing costs in city limits |
| Chenoa Fund | No | Pairs only with FHA/conv first mortgage |
When DPA actually helps a Veteran
- Buying above the county loan limit (need DPA to bridge the gap with a second).
- Closing costs higher than seller concessions can cover.
- Funding fee not waived and you don't want to finance it into the loan.
- Buying in a Pathway-to-Purchase eligible county with limited cash on hand.
- First-time buyer in Pima County using the HOME consortium.
Common questions
Does down payment assistance work with a VA loan in Arizona?
Yes, Arizona DPA works with a VA loan. Both Home Plus (statewide) and Home in Five (Maricopa County only) list VA as an eligible first mortgage, and each adds a 1% bonus for Active Duty and Veterans. DPA also pairs with FHA, USDA, and conventional. For most Veterans with full entitlement, the help goes toward closing costs, not the down payment.
Do you have to pay back down payment assistance in Arizona?
Usually no, not as a monthly payment. Home Plus and Home in Five both come as a forgivable or deferred soft second with no monthly payment, and the lien is forgiven over time or due only on sale or refinance. Terms vary by program, so confirm whether yours is forgivable or deferred before you close. See our current DPA figures page.
How much down payment assistance can I get with a VA loan?
Home Plus gives up to 5% of the loan amount (4% base plus a 1% bonus for Active Duty and Veterans), available statewide. Home in Five gives up to 6.5% in Maricopa County (5% base, plus 1% for military and Veterans, plus a 0.5% boost). Both pay as a soft second you don't make monthly payments on.
What credit score and income limits apply to Arizona DPA?
You need a 620 credit score for Home Plus and 640 for Home in Five. Home Plus caps borrower income at $155,386 ($146,503 with a VA, FHA, USDA, or conventional HFA loan). Home in Five caps household income at $157,360 as of June 10, 2026. VA itself can allow scores around 580, and each DPA program sets its own floor.
Do I have to be a first-time buyer to use VA with DPA?
No, you do not have to be a first-time buyer. Home Plus and Home in Five both allow repeat buyers, and a VA loan has no first-time-buyer requirement either. When a program does mention "first-time," it means no homeownership in the past three years, which a lot of people still meet.
Can I combine two DPA programs with my VA loan?
No, you can't stack two DPA programs on one purchase. You pick a single program (Home Plus or Home in Five), and that DPA layers on top of your VA first mortgage. City programs like City of Tucson HOME or City of Yuma assistance sometimes accept VA, but you still use only one assistance source per purchase.
Is DPA always the right move for a Veteran?
No, DPA isn't always the right move. Mike's take: most Veterans with full entitlement and cash for closing are better off skipping DPA, because the assistance can carry slightly higher first-mortgage pricing. We run seller concessions first, then a financed funding fee if it helps, then a closing-cost grant only if a real gap remains.
Does the VA funding fee affect DPA eligibility?
No, the funding fee doesn't affect DPA eligibility. The funding fee is separate from the assistance. If you're disability-rated at 10% or higher, the fee is waived and you save 1.25% to 3.3% of the loan amount. You can also finance the funding fee into the loan instead of using DPA to cover it.
How Mike + Cornerstone help
Most Veterans I work with don't need DPA at all once we run the actual numbers. When closing costs ARE the issue, I'll walk you through the stack options — seller concessions first, then financed funding fee if it makes sense, then a closing-cost grant only if a real gap remains.
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.