Updated · Mike Certo, NMLS #260555
Arizona DPA for Divorced Buyers: First-Time Status Rules
Divorced Arizona buyers often assume they're not "first-time buyers" because they previously owned a home with their ex-spouse. HUD's actual definition is broader than that — and most Arizona DPA programs follow it. Here's how the rules actually work.
HUD's actual first-time buyer definition
HUD defines a first-time buyer as someone who has NOT owned a principal residence in the past THREE YEARS. The clock resets after three years of non-ownership. There are also specific exceptions that make many divorced and displaced buyers eligible even within that three-year window.
The three-year ownership rule
If you owned a home with your ex-spouse and then sold it (or transferred ownership in the divorce) more than three years ago, you're a first-time buyer under HUD's definition regardless of past ownership.
Displaced homemaker exception
HUD treats "displaced homemakers" as first-time buyers even within the three-year window. A displaced homemaker is generally someone who:
- Has worked primarily without compensation to care for home and family
- Has not worked full-time/year-round in the labor force for a number of years
- Is unemployed or underemployed
- Is experiencing difficulty in obtaining or upgrading employment
Divorced buyers who were primarily homemakers during the marriage often qualify under this exception.
Single-parent exception
HUD treats "single parents" as first-time buyers even within the three-year window. A single parent generally means:
- An individual who is unmarried or legally separated from a spouse, AND
- Has one or more minor children for whom the individual has custody or joint custody, OR is pregnant
Divorced single parents typically qualify under this exception immediately, regardless of prior home ownership during the marriage.
Arizona DPA programs following HUD's definition
Most Arizona DPA programs follow HUD's first-time buyer definition (including the displaced homemaker and single parent exceptions):
- Home Plus: Follows HUD definition
- Home in Five Advantage: Follows HUD definition
- Pima Tucson HBS: Follows HUD definition
- Flagstaff CHAP: Follows HUD definition
Some programs don't require first-time buyer status at all:
- Chenoa Fund: No FTHB requirement
- Arrive Home: No FTHB requirement
- Essex/NHF: No FTHB requirement
Income traps for divorced buyers
- Alimony / spousal support — counts as income for qualifying. Document the divorce decree and recent payment history.
- Child support — counts as income if there's a documented multi-year history and continuation expected for 3+ years.
- Property division proceeds — can count as down payment funds. Document the source.
- Income limits on DPA programs — household income only includes you (the buyer), not your ex.
Occupancy traps
- Primary residence requirement — DPA programs require primary residence occupancy. If you're buying a second home for visitation purposes, DPA doesn't apply.
- Pending divorce vs finalized divorce — typically need the divorce to be finalized before applying. Pending divorces can complicate eligibility.
- Quitclaim deed timing — if you signed away ownership of the marital home, document the date precisely. That's when the three-year clock started.
Worked Example: DPA for a Recently Divorced Arizona Buyer
A divorced single mother in Mesa has a household income of $67,000. She hasn't owned a home in her own name since the divorce was finalized two years ago. She qualifies as a first-time buyer under HUD's single-parent exception. Here's how the DPA math works on a $320,000 home using Home Plus.
| Item | Amount |
|---|---|
| Purchase price | $320,000 |
| Household income (single filer) | $67,000 |
| Income limit (Maricopa County, 120% AMI) | ~$87,000 — qualifies |
| Home Plus DPA grant (3% of purchase price) | $9,600 |
| Minimum down payment required (FHA, 3.5%) | $11,200 |
| Down payment remaining after DPA | $1,600 out of pocket |
The $9,600 grant covers most of the down payment. The buyer only needs $1,600 of her own cash at closing (before closing costs). Child support income documented with a three-year continuation history counts toward the $67,000 qualifying figure.
For illustrative purposes only. Income limits, program parameters, and AMI figures are subject to change. See current DPA figures for today's income caps and assistance amounts. One DPA program per home purchase. Full eligibility requires file review.
Next step
20-minute call. Bring divorce status (pending or finalized), prior home ownership history with dates, custody status if children involved, and rough income picture. We map first-time buyer status and DPA eligibility.
Related
FAQ
Do I have to be a first-time buyer after a divorce?
No, not in most cases. HUD counts you as a first-time buyer if you have not owned a home in the past 3 years, so the clock resets. Divorced single parents with custody and displaced homemakers qualify right away, even inside the 3-year window. Home Plus and Home in Five both follow HUD's definition, and several programs drop the first-time rule entirely.
How much down payment assistance can I get in Arizona?
Home Plus gives you up to 5% of the loan amount statewide (4% plus 1% extra for Active Duty and Veterans). Home in Five gives up to 6.5% but only in Maricopa County (5% base, plus 1% for teachers, first responders, military, Veterans, or income-qualified buyers, plus a 0.5% boost). On a $320,000 Home Plus loan, a 3% award is about $9,600.
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 a 580 score, and each DPA program sets its own minimum. If your score dropped during the divorce, we map out a short plan to get you over your program's floor before you apply.
What are the income limits, and does my ex's income count?
Income limits are based on you, the buyer, not your ex. Home Plus caps borrower income at $155,386, or $146,503 when you use an FHA, VA, USDA, or conventional HFA loan. Home in Five caps household income at $157,360 as of June 10, 2026. After a divorce, only your income and any documented support payments count.
I owned a home with my ex 4 years ago. Am I a first-time buyer?
Yes, the 3-year clock has reset. You qualify as a first-time buyer under HUD's definition regardless of past ownership, since you have not owned a principal residence in the past 3 years. This applies whether you sold the marital home or transferred it to your ex in the divorce settlement more than 3 years ago.
I have a child from the marriage and am the custodial parent. Does that change anything?
Yes, single parents with custody or joint custody of minor children qualify as first-time buyers under HUD's single-parent exception, regardless of prior ownership. You do not have to wait out the 3-year window. This exception applies immediately, so a recently divorced custodial parent can use Home Plus or Home in Five right away.
Can child support and alimony count as qualifying income?
Yes, with documentation. Child support and alimony both count toward your qualifying income when you show a multi-year payment history and the payments are expected to continue for at least 3 years. Document the divorce decree and recent payment records. This income counts toward the $155,386 Home Plus borrower cap or the $157,360 Home in Five household cap.