How Much Down Payment Do I Really Need to Buy a Home in Arizona?
The "you need 20% down" rule is wrong for most buyers. The minimum is much lower — sometimes zero — depending on which loan type you use. Here's the actual menu.
Minimum down payment by loan type
| Loan type | Min down | Notes |
|---|---|---|
| VA | 0% | Active-duty military, Veterans, surviving spouses |
| USDA | 0% | Specific eligible / suburban areas; income limits apply |
| FHA | 3.5% | FICO 580+; widely available |
| Conventional 97 (FHFA) | 3% | FICO 620+; eligible buyers, primary residence |
| Conventional with PMI | 5% | FICO 620+; mortgage insurance required <20% down |
| Conventional, no PMI | 20% | The famous "20%" — no PMI, but most buyers don't have it saved |
| Jumbo | 10–25% | Loan amounts above conforming limits |
Where the "20%" rule came from
20% down avoids private mortgage insurance (PMI) on a conventional loan. PMI is roughly 0.3–1.0% per year of the loan, depending on FICO and LTV. So 20% down saves you the PMI — but if you have to wait 5 extra years to save 20% while home prices appreciate, the math usually doesn't favor waiting.
For most first-time buyers, putting 3–5% down with PMI and buying now beats waiting to save 20%. The PMI drops off automatically when you reach 22% equity.
Where DPA fits in
Down payment assistance is essentially a way to bridge the gap between what you have saved and the program's minimum down. With DPA, you can effectively bring your out-of-pocket down payment to $0 or close to it — even on programs that nominally require 3.5% or 5% down.
Example: FHA loan requires 3.5% down. You have $0 saved. A 5% DPA program can cover the 3.5% down plus some closing costs. You bring almost nothing to closing — you just pay a slightly higher first-mortgage rate to fund the assistance. Full DPA basics →
How to figure out your number
Three inputs:
- Loan amount you'd qualify for (income, DTI, credit dependent).
- Loan type you'll use (VA, FHA, conventional, USDA).
- Whether you'll use DPA.
From there, the math is:
Cash to close = (Down payment) + (Closing costs) − (DPA assistance) − (Seller credits)
Down payment & DPA questions
How much down payment assistance can I get in Arizona?
Home Plus gives up to 5% of the loan amount statewide (4% plus an extra 1% for active-duty military and Veterans). Home in Five gives up to 6.5% in Maricopa County (5% plus 1% for teachers, first responders, military, Veterans, or income-qualified buyers, plus a 0.5% boost). That is usually enough to cover the down payment and part of closing costs.
Do you have to pay back down payment assistance in Arizona?
It depends on the program. Home Plus and Home in Five fund the assistance as a soft second lien with no monthly payment, structured to be forgivable or deferred rather than a check you write back each month. Some local programs are repayable. Always confirm the exact lien terms for your program before closing, since they decide whether the help is a grant or a loan.
Do I have to be a first-time buyer to use DPA?
No. Home Plus and Home in Five both allow repeat buyers, so you can use them even if you have owned before. Where a program does require "first-time" status, that means you have not owned a home in the last 3 years. Most Arizona buyers who think they are disqualified actually still qualify.
What credit score do I need for Arizona DPA?
You need a 620 FICO for Home Plus and 640 for Home in Five. FHA on its own allows scores down to 580, and each DPA program sets its own minimum. If you are below your program's floor, focus on credit repair first, or buy now with FHA and add assistance later when your score qualifies.
What are the income limits for Arizona DPA?
Home Plus uses a borrower income limit of $155,386 ($146,503 when paired with an FHA, VA, USDA, or conventional HFA loan). Home in Five uses a household income limit of $157,360 as of June 10, 2026. These limits are generous and cover most Phoenix-area first-time buyers. See our current DPA figures for the latest numbers.
Does DPA work with FHA, VA, USDA, and conventional loans?
Yes, all four. Down payment assistance layers on top of your first mortgage, so you can pair it with an FHA, VA, USDA, or conventional loan. You cannot combine two DPA programs on the same purchase, though. It is one assistance program per home, sitting on top of one first mortgage.
Next step
Bring your numbers and we'll show you four scenarios side-by-side: 0% down VA (if eligible), 3.5% FHA, 5% conventional, and FHA-with-DPA. You'll see exactly what each costs at closing and per month.
Related reading: