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)
Assistance the program gives you toward your down payment and closing costs as a forgivable or deferred soft second with no monthly payment. As long as you keep the home as your primary residence, you owe nothing back. Examples: Home Plus (statewide) and Home in Five Advantage (Maricopa County only), both of which add a 1% bonus for Active Duty and Veterans.
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. Example: Pathway to Purchase ran this way in 17 designated cities, though it is suspended and out of funds as of June 2026.
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 | up to 5% (4% + 1% Active Duty/Veteran) |
| Home in Five Advantage | Maricopa County only | up to 6.5% (5% + 1% bonus + 0.5% boost) |
| Pathway to Purchase (suspended as of June 2026) | 17 designated cities | Out of funds — not available |
| 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:
- A 620 credit score for Home Plus or 640 for Home in Five (FHA on its own allows 580, and each DPA program sets its own minimum)
- Income under the program cap: Home Plus borrower income up to $155,386 ($146,503 with FHA/VA/USDA/conventional HFA loans), and Home in Five household income up to $157,360 as of June 10, 2026
- A homebuyer education course for most programs (about 4-8 hours, online, often free or $50-100)
- Primary residence occupancy within 60 days
- Working with a participating lender
You do not have to be a first-time buyer for Home Plus or Home in Five — both allow repeat buyers. Where a program does require it, "first-time" simply means you haven't owned a primary residence in the last 3 years. See the current DPA figures for the exact, up-to-date limits.
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.
Arizona DPA questions buyers ask
Do you have to pay back down payment assistance in Arizona?
Usually not. Most Arizona DPA, including Home Plus and Home in Five, comes as a forgivable or deferred soft second with no monthly payment. As long as you keep the home as your primary residence, you owe nothing back. Some programs forgive over a set period; others sit silent and are only repaid if you sell, refinance for cash-out, or move out early. A few are below-market first mortgages, which carry no separate balance at all.
How much down payment assistance can I get?
You can get up to 5% of your loan with Home Plus statewide (4% plus a 1% Active Duty or Veteran bonus). In Maricopa County, Home in Five Advantage goes up to 6.5% (5% base, a 1% bonus for teachers, first responders, military, and Veterans, plus a 0.5% boost). The right amount depends on your loan size, county, and which program fits your scenario.
What credit score do I need for Arizona DPA?
You need a 620 credit score for Home Plus and 640 for Home in Five. FHA on its own allows scores as low as 580, and each DPA program sets its own minimum. If your score is below your program's floor, Mike can map out a short plan to get you there before you apply.
What are the income limits for Arizona DPA?
For Home Plus, borrower income can be up to $155,386, or up to $146,503 when paired with FHA, VA, USDA, or conventional HFA loans. For Home in Five, household income can be up to $157,360 as of June 10, 2026. These caps change, so check the current DPA figures for the exact numbers before you assume you're over the line.
Can I combine two DPA programs, and does DPA work with my loan?
No, you can't combine two DPA programs — it's one per purchase. The DPA layers on top of one first mortgage, and it works with FHA, VA, USDA, and conventional loans. So you pick the single DPA program that fits your county and scenario, then pair it with the loan type that's right for you. Mike runs the comparison so you don't stack programs that won't stack.
Is DPA always the right move?
No. DPA can carry slightly higher first-mortgage pricing in exchange for the help with your down payment. If you already have savings, it's worth comparing the cost of the assistance against simply putting your own money down. Mike will tell you when DPA isn't the right move for your numbers — that honest read is the point of a free eligibility check.
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.