City of Sedona
Karen Osburn
City of Sedona
102 Roadrunner Dr., Sedona, AZ 86336
Cottonwood programs: contact Jeanne Frieder at (928) 203-5138 · jfrieder@sedonaaz.gov
Program · Sedona & Verde Valley
Sedona Workforce Homeownership Programs
The City of Sedona funds two related down payment assistance programs for first-time Verde Valley homebuyers. Both can provide up to $40,000 in down payment and closing-cost help — but they have different employer eligibility rules. Administered by Housing Solutions of N. Arizona (HSNA).
Two programs, side by side
| Detail | Sedona SWHAP | Sedona EAH |
|---|---|---|
| Who qualifies | Any employee working ≥30 hrs/week within City of Sedona limits | City of Sedona municipal employees only (non-temporary, ≥30 hrs/week) |
| Maximum assistance | Up to $40,000 (verify match terms — see note below) | Up to $40,000 |
| Match | 4 to 1 on borrower funds (per Terms section) | 4 to 1 on borrower funds (up to $10,000 of your contribution) |
| Income limit | ≤150% AMI (Coconino County, by household size) | No explicit income cap |
| FTHB requirement | Yes — first-time Sedona-area buyer (no AZ home in Yavapai/Coconino counties in 3 years) | Yes — same definition |
| Performance review | Not applicable | Most recent performance evaluation must meet or exceed expectations; not on a performance work plan |
| Form | No-interest deferred-payment loan, 2nd lien | No-interest deferred-payment loan, 2nd lien |
| Forgiveness | Never forgiven | Never forgiven |
| Retention period | 5 years (separation triggers full repayment within 6 months; can convert to 10-yr amortized at prime+5% if cannot repay) | 5 years (same conversion option) |
Verify with HSNA: the SWHAP source document contains an internal inconsistency on match — one section indicates a 2.5:1 match up to $25,000, while the Terms section indicates 4:1 up to $40,000. The $40K number aligns with sister-program Cottonwood CHP. Confirm the active match and cap with HSNA before relying on any specific number.
Where you can buy — Verde Valley zip codes
Both SWHAP and Sedona EAH require the home to be in one of these zip codes:
| Zip Code | Area |
|---|---|
| 86322 | Camp Verde |
| 86324 | Clarkdale |
| 86325 | Cornville / Page Springs |
| 86326 | Cottonwood / Verde Villages / Bridgeport |
| 86331 | Jerome |
| 86335 | Rimrock / Beaver Creek / Lake Montezuma / McGuireville |
| 86336 | Sedona |
| 86351 | Sedona |
Eligibility details — both programs
| Requirement | Detail |
|---|---|
| Employment | ≥30 hrs/week, on-site (not remote). SWHAP: any Sedona-area employer. EAH: City of Sedona only. |
| First-time homebuyer | No primary residence ownership in Yavapai or Coconino counties within the prior 3 years. |
| Property location | Verde Valley zip codes only (see above). |
| Property type | Permanently affixed home. Manufactured homes meeting FHA/Fannie Mae standards eligible. Land-only purchases not eligible. |
| Owner occupancy | Required. Continuous absence >60 days = default; repayment triggered. |
| Citizenship/legal status | U.S. citizen or lawfully admitted permanent resident. |
| Housing ratio | SWHAP: 30–35% of gross monthly income (never below 25%). EAH: ≤35%. |
| Debt-to-income | ≤45% of gross monthly income (both programs). |
| Need test (SWHAP only) | Liquid assets after closing ≤6 months PITI (excludes retirement assets). |
| Home price ceiling | Cannot exceed 1.3× the median home sales price for the area. Cannot exceed appraised value. |
| Homebuyer education | 8-hour HSNA-approved class required (~$50 with HSNA coupon code; available in English and Spanish via EHome America). |
| One-on-one counseling | HUD-standards housing counseling with HSNA required (free). |
| Closing-cost assistance cap | Of total assistance, up to 3% of purchase price can go toward closing costs. |
Income limits — Sedona SWHAP (Coconino County)
SWHAP uses HUD AMI guidelines for Coconino County, capped at 150% of AMI by household size. HUD updates these annually.
For reference, Coconino County's 150% AMI for 2025 was approximately:
- 1 person: ~$118,800
- 4 person: ~$169,800
Numbers are illustrative — current Coconino County limits change annually. HSNA will confirm the current chart at the application stage. Income includes all adult household members, even those not on the loan, per 24 CFR Part 5.
First mortgage requirements
The Sedona programs only work with safe, conventional first mortgages. Specifically not allowed:
- Negative amortizing loans
- Pre-payment penalties
- Interest-only loans
- Balloon payments
- Sub-prime mortgages
Closing costs and borrower fees must be reasonable and customary. Interest rates must be competitive. Each loan is reviewed by HSNA's Homebuyer Assistance Programs Committee before approval.
How repayment works
SWHAP and Sedona EAH are never forgiven. Triggering events:
- Sale of the home
- Cash-out refinance
- Property no longer owner-occupied
- Change in title
- Separation from qualifying Sedona employment during the 5-year retention period
For market-rate purchases, the repayment amount is the higher of:
- The original assistance amount, or
- The original assistance percentage applied to the home's current sale price or value
So if you got $40,000 in help on a $400,000 home (10% of value) and later sell for $500,000, you repay $50,000 (10% of the new value). This shared-appreciation feature protects city funds against rising AZ home values.
Special clause unique to the Sedona programs: if you separate from qualifying employment during the 5-year retention period and cannot repay in full within 6 months, the loan converts to a fully amortized 10-year repayment at prime rate plus 5%. This safety net is built in for Sedona borrowers but does not exist in the Cottonwood programs.
The City of Sedona also records a Right of First Refusal on the property, separate from the deed of trust — giving the city the option to purchase the home if you sell.
Process & timeline
- 1
Pre-qualify with us
20-minute call. We confirm Verde Valley zip code eligibility and run loan-program math (FHA/conventional first mortgage, paired with SWHAP or EAH).
- 2
HSNA counseling intake
One-on-one housing counseling with HSNA. They verify employment, household income, and need (SWHAP). Free service.
- 3
Homebuyer education
8-hour HSNA class via EHome America online ($50 with coupon). Required before funding reservation.
- 4
Loan pre-approval
We issue a pre-approval letter with the first mortgage. You receive an HSNA award letter once HSNA's HAP Committee approves.
- 5
Find a home
Verde Valley listings only. 1.3× median price cap applies. Inspection strongly recommended.
- 6
Close
HSNA staff coordinate with title and Cornerstone. Funds are reserved on a first-come-first-served basis once the City issues a Notice to Proceed.
Program contacts
Housing Solutions of N. Arizona
Devonna McLaughlin, CEO · devonnam@housingnaz.org
Angela Koder, Housing Programs Manager · angelak@housingnaz.org
Flagstaff, AZ · (928) 214-7456
FAQ
What's the difference between Sedona SWHAP and Sedona EAH?
SWHAP is for anyone employed in Sedona city limits at least 30 hours per week. EAH is only for City of Sedona municipal employees. Both can provide up to $40,000 in assistance. SWHAP has a 150% AMI income cap based on Coconino County; EAH does not have an explicit income cap.
Where can I buy with Sedona SWHAP or EAH funds?
Verde Valley zip codes only: 86322, 86324, 86325, 86326, 86331, 86335, 86336, 86351. Geographic eligibility is determined by zip, not city/town label.
Is the Sedona DPA forgiven over time?
No. SWHAP and EAH are interest-free deferred-payment loans that are never forgiven. Repayment triggers: sale, cash-out refinance, change in title, end of owner-occupancy, or separation from qualifying employment during the 5-year retention period.
What happens if I leave my Sedona job during the retention period?
Full repayment is due within 6 months. If you can't pay in full, the loan converts to a fully amortized 10-year repayment at prime rate plus 5%. After year 5, repayment is only triggered by sale, cash-out refinance, change in title, or end of owner-occupancy.
Do remote workers qualify?
No. The program requires at least 30 hours/week of on-site work for an employer within Sedona city limits. The employer must verify the role can't be performed remotely.
What's the match — 4:1 or 2.5:1?
The source program document has internal inconsistency: one paragraph says 2.5:1 up to $25,000; the canonical Terms section says 4:1 up to $40,000 (matching sister-program Cottonwood CHP). We recommend confirming the active match terms with HSNA before signing.
What if the home has appreciated significantly when I sell?
You repay the higher of your original assistance amount or your original assistance percentage applied to the new home value. Example: $40,000 on a $400,000 home (10%) becomes $50,000 due if the home sells for $500,000.
Can I use this with FHA, VA, or USDA?
Yes — both SWHAP and EAH layer on top of standard first mortgages (FHA, VA, USDA, conventional) as long as those loans meet the program's restrictions (no negative am, no pre-payment penalties, no interest-only, no balloon, no sub-prime).
How long does the process take?
Plan for 60–75 days from initial counseling to closing. Counseling intake + homebuyer education = 2–3 weeks. Loan pre-approval and HAP Committee approval = 2–3 weeks. Standard 30–45 day close after offer accepted.
Working in Sedona? Let's see if you qualify.
20 minutes — bring your employer, household income range, and rough credit. We'll confirm SWHAP vs EAH fit and run real numbers on a Verde Valley purchase.