DPA + FHA Loan in Arizona — 2026 Guide
FHA is the most common primary mortgage that pairs with Arizona DPA programs. The FHA 3.5% down requirement is small enough that a DPA program can cover all of it plus most closing costs. Here's how the pairing actually works and which DPA programs work cleanly with FHA in Arizona.
By Mike Certo, Cornerstone First Mortgage · NMLS #260555 · Updated 2026-06-08
Why FHA is the most common loan type for DPA
FHA requires 3.5% down. That's the smallest down-payment requirement that DPA programs can fully cover from the assistance amount. Most Arizona DPA programs are structured to either match the 3.5% FHA requirement or exceed it — meaning the DPA can cover the full down payment plus some of the closing costs. The combination of FHA's flexible underwriting and DPA's cash-on-the-table support is why this pairing is the entry point for most first-time Arizona buyers.
Arizona DPA programs that pair with FHA
Each of these is a different program — you choose one for your transaction (not multiple). FHA is the primary mortgage; the DPA program you select sits alongside it.
Home Plus (statewide AZ)
Arizona Department of Housing's flagship program. Provides 1% to 5% of the loan amount in down payment assistance, depending on the pricing tier you choose. Works with FHA primary mortgages. Income cap typically $112-$130K in 2026 depending on tier. Credit score 640+. Covers down payment and partial closing costs. Available in all Arizona counties.
Home in Five Advantage (Maricopa County only)
Maricopa County IDA program. 4% of loan amount as a grant (5% for qualifying public servants — teachers, sworn law enforcement, full-time hospital healthcare, paid firefighters/EMTs, active military). Works with FHA primary mortgages. Income cap roughly $153K for 2026. Credit score 640+. Covers down payment plus closing costs.
Chenoa Fund
National program with strong Arizona presence. 3.5% DPA, structured as either a repayable second mortgage or a forgivable grant depending on the variant chosen. No income limit (pricing tiers apply at higher incomes). Credit score 600+. Works with FHA primary mortgages statewide.
Arrive Home
National program. 3.5% DPA forgiven after 36 months of continued occupancy. No first-time-buyer requirement. Works with FHA primary mortgages. Most useful for repeat buyers or buyers whose income exceeds HFA limits.
Essex/NHF (National Homebuyers Fund)
National program. DPA in down payment plus closing cost form. Works with FHA primary mortgages statewide.
Pima Tucson Homebuyer's Solution
Pima County program. Up to 5% DPA as a 0% second mortgage, forgivable after 5 years of occupancy. Works with FHA primary mortgages. Income cap roughly 80% of Tucson MSA AMI.
The trade-offs of using DPA with FHA
DPA programs typically carry a slightly elevated first-mortgage rate to fund the assistance. Compared to a standard FHA loan without DPA, you trade a small monthly payment increase for thousands of dollars in upfront assistance. The math depends on how long you plan to stay in the home. For most first-time buyers, the upfront cash help is the right call.
FHA also requires mortgage insurance for the life of the loan unless you refinance into conventional later. That's separate from DPA and applies to all FHA loans.
Who FHA + DPA pairing fits best
- First-time Arizona homebuyers with limited cash for down payment + closing costs
- Credit scores 620-700 (FHA's sweet spot)
- Household income at or below the chosen DPA program's cap
- Buyers planning to stay in the home 5+ years
Next step
The right Arizona DPA program for your FHA loan depends on your specific scenario — income, credit, county, target purchase price. A 20-minute call covers all of it. Schedule a free consultation or call (480) 296-6513.