Flagstaff CHAP
The City of Flagstaff Community Homebuyer Assistance Program. By total dollar amount it's the most generous DPA in Arizona, up to $50,000. The tradeoffs: it's tightly geographically restricted, and the assistance is never forgiven. Best for buyers who plan to stay in Flagstaff long-term.
Quick answer: how does Flagstaff CHAP work?
- Where: City of Flagstaff only. Not Coconino County more broadly; the property must sit inside City of Flagstaff limits.
- Form: A repayable second mortgage with no monthly payment. Repaid in full on sale, cash-out refinance, or end of owner-occupancy. Never forgiven.
- Assistance: Up to $50,000 with a 10-to-1 buyer-funds match. You contribute up to $5,000 of your own money. CHAP matches it 10:1 up to the $50,000 cap.
- Income limit: 150% of Flagstaff Area Median Income (e.g., $169,800 for a family of 4; verify the current chart before relying on this).
- FTHB requirement: Yes, under the HUD definition (no primary residence ownership in the prior 3 years).
- Homebuyer education: Required (HUD-approved counseling agency).
If you're buying outside Flagstaff, compare CHAP against the other Arizona options on our down payment assistance programs page, and check the current DPA figures for up-to-date income and assistance limits. Nearby northern-Arizona buyers should also look at Sedona SWHAP and Cottonwood CHP.
How it works, step by step
- Confirm the home is inside City of Flagstaff limits.
- Confirm FTHB status under HUD's definition (haven't owned a primary residence in the last 3 years).
- Determine your buyer contribution — anywhere from a small amount up to $5,000. CHAP matches 10:1.
- Pre-qualify with us for the first mortgage and complete the City of Flagstaff CHAP application.
- Complete homebuyer education.
- Close. CHAP records as a second lien with no monthly payment, repayable on sale / refinance / non-occupancy.
Eligibility
| Requirement | Detail |
|---|---|
| Property location | Inside City of Flagstaff limits only. |
| Buyer contribution | Up to $5,000 of buyer's own funds (matched 10:1). |
| Maximum CHAP assistance | $50,000. |
| FTHB | Required (HUD definition). |
| Income limit | ≤ 150% of Flagstaff AMI (verify current chart). |
| Repayment trigger | Sale, cash-out refinance, or end of owner-occupancy. Never forgiven. |
| Homebuyer counseling | Required, HUD-approved agency. |
FAQ
Do you have to pay back Flagstaff CHAP?
Yes. Flagstaff CHAP is a repayable second mortgage, never forgiven. You make no monthly payment, but the full assistance amount comes due on sale, cash-out refinance, or when the home stops being your primary residence. That differs from statewide Home Plus, which is a forgivable or deferred soft second with no repayment if you stay.
How much down payment assistance can I get from CHAP?
You can get up to $50,000 from Flagstaff CHAP through a 10-to-1 buyer-funds match. You contribute up to $5,000 of your own money and the city matches it 10:1, so $5,000 becomes $50,000 of help. By total dollar amount it is the most generous DPA in Arizona, though it is limited to City of Flagstaff homes.
Do I have to be a first-time buyer for CHAP?
Yes. CHAP uses HUD's first-time buyer definition, which means you have not owned a primary residence in the past 3 years. So a prior homeowner can still qualify after a 3-year gap. Statewide programs like Home Plus and Home in Five do allow repeat buyers, so compare those if you have owned recently.
Does CHAP work with FHA, VA, USDA, or conventional loans?
Yes, CHAP works with all four. It layers on top of your first mortgage, whether that is FHA, VA, USDA, or conventional financing. CHAP records as a second lien with no monthly payment. Veteran buyers using a VA first mortgage can pair it with CHAP, and we will structure the combination at your consult.
Can I combine CHAP with another DPA program?
No. Arizona DPA programs do not stack with each other, so you choose the single program that fits your purchase. CHAP layers with your first mortgage (FHA, VA, USDA, or conventional), not with a second DPA. We'll confirm the best fit at the consult.
Is CHAP always the right move?
No. CHAP is best for buyers who plan to stay in Flagstaff long-term, because it is never forgiven and is repaid in full when you sell or refinance. If you have savings, or you might move within a few years, a forgivable program like statewide Home Plus can leave you better off. Compare both before you commit.
What's the AMI for Flagstaff right now?
2025 charts show 150% AMI of about $169,800 for a household of 4, which is the CHAP income ceiling. Charts update annually, so verify the current year on our current DPA figures page before relying on a number.
What if I sell after 5 years?
You repay the CHAP balance in full from the sale proceeds, because CHAP is never forgiven regardless of how long you have owned the home. The first mortgage is also paid off at closing, and you keep any equity above both balances.
Curious if Flagstaff CHAP is the right fit?
A 20-minute call. Bring your zip code, income range, and credit ballpark. We'll model real numbers against the actual program tiers.