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 up to 4% of the loan amount in down payment assistance, or up to 5% for Active Duty and Veterans. Structured as a forgivable, deferred soft second with no monthly payment. Works with FHA primary mortgages. Borrower income cap $155,386 ($146,503 when paired with an FHA, VA, USDA, or conventional HFA loan) for 2026. 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. Up to 5% of the loan amount, plus 1% for teachers, first responders, military, and Veterans, plus a 0.5% boost — up to 6.5% total for qualifying buyers. Works with FHA primary mortgages. Maximum household income $157,360 as of June 10, 2026. Credit score 640+. Covers down payment plus closing costs. Maricopa County only.
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
FHA + DPA in Arizona: frequently asked questions
Do you have to pay back down payment assistance in Arizona?
It depends on the program. Home Plus and Home in Five are forgivable, deferred soft seconds with no monthly payment, so most buyers never repay them. Chenoa offers both a repayable and a forgivable version. Arrive Home forgives the assistance after 36 months in the home, and Pima HBS forgives after 5 years. Your loan officer confirms the exact lien terms before you sign.
How much down payment assistance can I get with an FHA loan?
Home Plus gives up to 4% of the loan amount statewide, or up to 5% for Active Duty and Veterans. Home in Five gives up to 5% in Maricopa County, rising to 6.5% with the public-servant and boost layers. Because FHA only needs 3.5% down, either program covers the full down payment plus part of your closing costs.
What credit score do I need for Arizona DPA with FHA?
You need a 620 credit score for Home Plus and 640 for Home in Five. FHA's own minimum is 580 for 3.5% down. There is no single DPA credit score; it depends on the program, so 620 controls with Home Plus and 640 with Home in Five. If your score sits below your program's floor, FHA alone may still work while you build credit toward DPA eligibility.
What are the income limits for Arizona DPA?
Home Plus caps borrower income at $155,386, or $146,503 when paired with an FHA, VA, USDA, or conventional HFA loan. Home in Five caps total household income at $157,360 as of June 10, 2026. These limits change, so confirm the current figure on our current DPA figures page before you count on a number.
Do I have to be a first-time buyer to use DPA with FHA?
No. Home Plus and Home in Five both allow repeat buyers, so you can use DPA on a move-up purchase, not just your first home. Where a program does use the "first-time buyer" label, it means you have not owned a home in the past three years. FHA itself has no first-time-buyer requirement either.
Home Plus vs Home in Five with FHA — which is better?
It comes down to location and how much help you need. Home Plus is statewide and gives up to 5%, so it covers buyers in every Arizona county. Home in Five is Maricopa County only but reaches up to 6.5% for teachers, first responders, and military. If you are buying in Maricopa and qualify for the bonus layers, Home in Five usually wins; everywhere else, Home Plus is the answer.
Can I combine two DPA programs on one FHA loan?
No. You pick one DPA program per home purchase, and Arizona programs do not stack with each other. What does layer is one DPA program on top of your first mortgage — that natural pairing is what "DPA + FHA" means. We compare the programs you qualify for and choose the single best fit for your county, income, and credit.
Is DPA always the right move with FHA?
No. DPA programs usually carry slightly higher first-mortgage pricing to fund the assistance, so if you already have savings for the 3.5% down and closing costs, a standard FHA loan can cost less over time. The right call depends on how long you plan to stay. We run both numbers so you see the real trade-off before deciding.
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.