DPA + VA Loan in Arizona — Guide for Veteran Buyers
VA loans require zero down for qualifying Veterans, so DPA layering with VA usually targets closing costs rather than down payment. Combined with VA's funding fee waiver for service-connected disability, the math can mean effectively zero out-of-pocket at close. Here's how the pairing actually works in Arizona.
By Mike Certo, Cornerstone First Mortgage · NMLS #260555 · Updated 2026-06-08
Why VA + DPA is different than FHA + DPA
VA loans don't require a down payment for qualifying Veterans, so layering DPA with VA doesn't follow the same logic as DPA + FHA (where DPA covers the 3.5% down payment). Instead, VA + DPA layering typically targets:
- Closing costs: Title, escrow, appraisal, prepaid taxes and insurance, lender fees
- VA funding fee: If the buyer isn't already exempt due to disability rating
- Reserves: Some VA loans require reserve cushion that DPA can help with
Arizona DPA programs that pair with VA
Home Plus (statewide AZ)
Home Plus pairs with VA primary mortgages. The assistance is up to 4%, plus a 1% boost for Active Duty service members and Veterans, for up to 5% toward VA closing costs, the funding fee, and reserves. Borrower income limit is $146,503 when paired with a government loan like VA. Credit score 620. Works in all Arizona counties.
Home in Five Advantage (Maricopa)
Home in Five Advantage pairs with VA primary mortgages in Maricopa County. Assistance runs up to 5%, plus a 1% boost for military, Veterans, teachers, first responders, and income-qualified buyers, plus a 0.5% boost, for up to 6.5%. Household income limit is $157,360 as of June 10, 2026. Credit score 640. Useful for Phoenix-metro Veterans who don't qualify for the funding fee waiver and want VA plus closing-cost help.
Pima Tucson Homebuyer's Solution
Pima HBS pairs with VA primary mortgages. Useful for Tucson-area Veterans and Davis-Monthan AFB families.
VA funding fee + DPA — the disability angle
The VA funding fee (a percentage of the loan amount, financed) is waived entirely for Veterans with a service-connected disability rating of 10% or higher. If you qualify for that waiver and you use DPA for closing costs, you can effectively close on a VA-financed home with zero out-of-pocket. That's the cleanest possible math for Arizona Veterans.
If you don't qualify for the funding fee waiver, DPA can help cover that fee — but the fee is also financeable into the loan amount itself. Talk through both options on the call.
Who VA + DPA pairing fits best
- Active duty, Veterans, or qualifying surviving spouses
- Limited cash on hand for closing costs and reserves
- Particularly powerful for service-connected disabled Veterans (10%+ rating = funding fee waiver)
- Buyers near Luke AFB, Davis-Monthan, Fort Huachuca, or Yuma MCAS
We cite VA Lender Handbook guidelines for VA-specific eligibility. For service-connection or disability rating questions, talk to a VA-accredited counselor — that's not the lender's role.
Veterans' questions about DPA with a VA loan
Do you have to pay back down payment assistance in Arizona?
It depends on the program. Arizona's Home Plus and Home in Five give the assistance as a forgivable or deferred soft second lien with no monthly payment, so most Veterans never repay it as long as they meet the program's occupancy term. A few city programs are deferred and repaid only when you sell or refinance. We confirm the exact lien terms for your scenario before you commit.
How much down payment assistance can a Veteran get?
An Arizona Veteran can get up to 5% with Home Plus (4% base plus a 1% Active Duty/Veteran boost) statewide, or up to 6.5% with Home in Five in Maricopa County (5% base plus boosts). Since a VA loan needs zero down, that money typically goes toward closing costs, the VA funding fee, and reserves instead of a down payment.
What credit score do I need for Arizona DPA with a VA loan?
You need a 620 credit score for Home Plus and 640 for Home in Five, the two main Arizona DPA programs. That's the DPA program floor. A standalone VA loan can sometimes go lower, but once you add DPA, the program minimum is the number to hit. If you're close, we can map out what it takes to get there before you apply.
What are the income limits?
Home Plus caps borrower income at $146,503 when paired with a government loan like VA. Home in Five caps household income at $157,360 as of June 10, 2026. These limits are generous enough that most Arizona Veteran households qualify. We check your specific income against the current limit on the call. See the current DPA figures for the latest numbers.
Do I have to be a first-time buyer?
No. Home Plus and Home in Five both allow repeat buyers, so you can use DPA with a VA loan even if you've owned before. Some programs define "first-time buyer" as not having owned a home in the last three years, but neither of these two programs requires first-time status at all. That makes them a strong fit for Veterans buying their second or third home.
Can I combine two DPA programs?
No. You use one DPA program per home purchase. Arizona DPA programs do not stack with each other. What does pair naturally is one DPA program with one VA first mortgage, which is what "DPA + VA" means. We'll help you pick the single program that gives you the most assistance for your county and income.
Does DPA work with VA, FHA, USDA, and conventional loans?
Yes, Arizona DPA works with all four: VA, FHA, USDA, and conventional. For Veterans, pairing DPA with VA is usually the strongest play because VA needs zero down and the funding fee can be waived for service-connected disability. The DPA then covers closing costs and reserves, which is where Veterans most often need the help.
Is DPA always the right move for a Veteran?
Not always. DPA can come with slightly higher first-mortgage pricing, so if you already have enough savings to cover VA closing costs, paying out of pocket may cost less over time. For Veterans short on cash to close, DPA is often the difference between buying now and waiting. Mike runs both scenarios so you can compare the real numbers.
Next step
Walk through your specific scenario — service status, disability rating (if any), target neighborhood, income. A 20-minute call covers it all. Schedule a free consultation or call (480) 296-6513.
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