How AZ down payment assistance actually works in 2026
Arizona has more down payment assistance programs than most states. Most AZ first-time buyers don't realize how much money is available. Here's the plain-English version.
The three forms AZ DPA takes
1. Forgivable grant (most common)
A grant the program gives you toward your down payment + closing costs. If you stay in the home long enough (typically 3-5 years), it's forgiven — you owe nothing back. Examples: Home In Five Advantage (Maricopa + Pinal, includes 1% vet bonus).
2. Silent second mortgage
A small second loan with no monthly payment. Repaid only when you sell, refinance for cash-out, or stop using the home as primary residence. Examples: Pathway to Purchase (specific eligible cities).
3. Below-market-rate first mortgage
Not cash assistance — instead, your first mortgage rate is reduced. Saves $100-$200/month for 30 years. Examples: Some Home Plus variants + state HFA programs.
Which AZ DPA programs you should know about
| Program | Geography | Max amount |
|---|---|---|
| Home Plus | Statewide AZ | 5% of loan |
| Home In Five Advantage | Maricopa + Pinal only | 6% (includes 1% vet bonus) |
| Pathway to Purchase | Specific cities (changes) | 10% (max $20K) |
| Chenoa Fund | Statewide | 3.5% (FHA-only paired) |
| Cottonwood CHP | Cottonwood/Yavapai | 10% |
| Sedona SWHAP | Sedona | $50K+ |
| Flagstaff CHAP | Flagstaff | up to $30K |
How to qualify
Most AZ DPA programs require:
- First-time homebuyer (HUD definition: haven't owned primary residence in last 3 years)
- Income under specified cap (varies by program; typically 80-120% AMI)
- Credit score 640+
- HUD-approved homebuyer education course (4-6 hours, often online + free)
- Primary residence occupancy (60 days)
- Working with a participating lender
Common AZ DPA mistakes
- Applying through a non-participating lender. The DPA only works through approved lenders. Verify before going under contract.
- Missing income limit by $500. Combined household income matters. Bring 2 years of tax returns to your initial conversation.
- Forgetting homebuyer education. Don't wait until closing to take the course. Do it in pre-approval phase.
- Moving out before forgiveness period. Triggers repayment.
How Mike helps
Cornerstone is approved for all major AZ DPA programs. Free eligibility check + which programs stack with which loan type for YOUR scenario.