Flagstaff CHAP
The City of Flagstaff Community Homebuyer Assistance Program. The most generous DPA in Arizona by total dollar amount — up to $50,000 — but tightly geographically restricted and 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 — must be inside City of Flagstaff limits).
- Form: repayable second mortgage with no monthly payment. Repaid in full on sale, refinance for cash-out, 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 current chart).
- FTHB requirement: yes — HUD definition (no primary residence ownership in the prior 3 years).
- Homebuyer education: required (HUD-approved counseling agency).
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 / refi / 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 refi, or end of owner-occupancy. Never forgiven. |
| Homebuyer counseling | Required, HUD-approved agency. |
FAQ
Is CHAP forgiven over time?
No. CHAP is never forgiven. The full assistance amount is repaid on sale, cash-out refinance, or when the home stops being your primary residence.
Why does CHAP require a buyer contribution?
The 10:1 match is structural to the program. It ensures buyer skin-in-the-game and limits the program's exposure. The match means $5,000 of your money becomes $50,000 of help.
What if I sell after 5 years?
You repay the CHAP balance in full from the sale proceeds. The first mortgage is also paid off; you keep any equity above both.
What's the AMI for Flagstaff right now?
2025 charts show 150% AMI of about $169,800 for a household of 4. Charts update annually — verify the current year before relying on a number.
Can I combine CHAP with another DPA program?
CHAP is sometimes combinable with another approved assistance program — it's program-specific. We'll confirm at the consult.
Curious if Flagstaff CHAP is the right fit?
20 minutes — bring your zip code, income range, and credit ballpark. We'll model real numbers.