Arizona first-time homebuyer grants and down payment assistance (2026)

How Home Plus’s 4% is forgiven, and when you would owe it back

Home Plus pays a percentage of your first mortgage, rounded to the nearest dollar, as a second lien at 0% interest with no monthly payment ⁠¹. The options depend on the first loan ⁠²:

On a $350,000 FHA loan, 4% is $14,000. All of it is forgiven on the loan’s fifth anniversary, with no partial forgiveness before then ⁠¹. If you sell or refinance within the first 60 months, you repay all of it. The Arizona IDA will not subordinate its lien to let you refinance ⁠¹⁠². The money can cover up to 100% of your cash to close, but none of it is paid out to you ⁠¹.

The “0%” choice is the first mortgage alone, useful for its reduced conventional mortgage insurance, which is limited to borrowers at or below 80% of area median income ⁠².

The $155,386 income cap applies in all 15 counties and counts only the qualifying income of borrowers on the note, not the household (except on USDA loans) ⁠¹. The Arizona IDA adds no purchase price limit of its own, so FHA, VA, USDA and conforming loan limits are the only ceiling ⁠¹. Lenders may charge up to a 1% origination fee but no discount points ⁠¹.

Arizona Is Home: rural county limits and a 2026 funding cutoff

Arizona Is Home is the state’s first-time buyer program. You qualify if you have not owned a home in the past three years, or if you are a qualified veteran or buy in a federally targeted area ⁠³. It pays 4% of the first mortgage as a 0% second lien. That lien is never forgiven: the full balance is due when you sell or refinance ⁠³. It is offered in 13 counties. It is not available in Maricopa County, Pima County or the town of Chino Valley ⁠³. The price cap is $481,176 in every eligible county. Income counts everyone on the note or title and cannot exceed 100% of county median income ⁠³:

The 100% limit is a temporary increase from 80% of median income that began Oct. 1, 2024 ⁠⁴.

As of Oct. 6, 2026, the Arizona IDA says the 2026 funds are exhausted and the program is closed for the rest of the year ⁠⁴. Arizona Is Home cannot be combined with an MCC ⁠⁵. If a sale triggers federal recapture tax, the Arizona IDA will reimburse it if its first mortgage was still in place at the sale and you apply by July 15 of the following year ⁠⁴.

Maricopa County: Home in Five Advantage and its second-loan terms

The Maricopa County and Phoenix industrial development authorities have run Home in Five Advantage since 2012. It covers homes anywhere in Maricopa County, including Phoenix ⁠⁷⁠⁹. Borrowers need a 640 credit score. Qualifying income can be at most $153,440, and the debt-to-income ratio up to 50%. There is no purchase price limit, and you must move in within 60 days of closing ⁠⁷. Only its 7-year option requires first-time buyer status ⁠⁹. Assistance is 3% to 6% of the first mortgage, and you choose how the second loan works ⁠⁹:

• 3-year forgivable (FHA or VA). 0% and deferred. It is forgiven 1/36th for each full month you stay, and the unforgiven balance is due if you sell, transfer or refinance.
• 10-year amortizing. 6% interest, with a separate monthly payment that counts in your debt ratio. It is never forgiven.
• 30-year deferred (Fannie Mae or Freddie Mac conventional loans, 3% to 5%). 0% and due on sale, transfer or refinance. It is released only at the 30-year maturity.
• 7-year forgivable. This is Arizona Is Home’s Maricopa version. It is for first-time buyers who have lived in Arizona for six months and earn up to $131,520 ⁠¹⁰. The program says its money for this option ran out on June 25, 2026, and it does not expect more. Home in Five Platinum, the bond program, used all its funds and closed its waitlist on June 9, 2026 ⁠⁸.

Maricopa buyers can use statewide Home Plus instead, with its 620 score floor ⁠¹.

Pima County and Tucson: three programs that can be stacked

Community Investment Corporation (CIC Tucson) administers all three Pima County programs, and its page says they can be combined ⁠¹³.

Pima Tucson Homebuyer’s Solution. This program is sponsored by the Pima County and City of Tucson IDAs. It pays 2% to 5% of the loan as a 0% second mortgage ⁠¹³. The loan is forgiven when the 30-year term ends, but it is due if you sell, refinance or pay off the first mortgage before then ⁠¹². There is no first-time buyer rule and no purchase price limit. Income can be at most $155,386 for loans reserved from May 21, 2026, or $79,840 for conventional loans at or below 80% of median income ⁠¹². The program site lists a 640 minimum score ⁠¹¹. Every borrower on the note must complete homebuyer education ⁠¹². Funding is a first-come, first-served revolving pool, and there is no recapture tax ⁠¹².

HOME Consortium down payment loan. The City of Tucson and Pima County lend up to $50,000 or 20% of the price, whichever is less, to buyers at or below 80% of median income ⁠¹³. That limit is $55,900 for one person, $79,850 for four and $105,450 for eight. The price cap is $304,000 for an existing home or $345,000 for a new one (effective March 2026). You need $1,000 of your own money, two months of payments in reserve and no more than $10,000 in cash assets. Your housing debt ratio can be at most 45%, and anything above 35% needs city or county approval. Interest that accrues during the affordability period is forgiven, but the principal must be repaid when you sell ⁠¹³. You apply through a counseling agency: Administration of Resources and Choices, Chicanos Por La Causa, Pima County Community Land Trust or Primavera Foundation ⁠¹³.

MCC. CIC Tucson issues every MCC in Arizona ⁠⁵. As of Oct. 20, 2026 it accepts applications only for homes in Pima County ⁠⁶. The credit is worth up to $2,000 a year and applies each year you keep the mortgage and live in the home ⁠⁶. CIC puts the rate at 40% of yearly mortgage interest ⁠¹³. You must be a first-time buyer, a qualified veteran or buying in a targeted area, and you must be approved before closing. Income can be at most $103,600 for 1-2 people or $119,140 for 3 or more ($124,320 and $145,040 in targeted areas). The price cap is $566,354, or $692,211 in a targeted area. The fee is $1,000 once, then $100 a year ⁠⁶. An MCC can be combined with Home Plus ⁠⁵.

City of Phoenix Open Doors for buyers at 80% of AMI

Phoenix’s Open Doors Down Payment Assistance Program lends up to 10% of the purchase price. The loan is 0% with no monthly payments and is forgiven after an affordability period of up to 15 years. You repay it if you sell, move out or refinance before the period ends ⁠¹⁴. It is for first-time buyers purchasing inside Phoenix city limits for no more than $470,250. You must complete an eight-hour homebuyer class and one-on-one counseling with a HUD-approved agency. The loan can be layered with other assistance programs ⁠¹⁴. The 80% income limits in effect since May 1, 2026 run from $62,950 for one person to $89,900 for four and $118,700 for eight ⁠¹⁵. The city’s page does not say how much funding is left, so ask before you sign a contract ⁠¹⁴.

Credit, debt ratio and education rules side by side

Scroll the table sideways to see every column.

Sources: ⁠¹⁠²⁠⁷⁠¹¹⁠¹²⁠¹⁴. Arizona IDA’s approved online courses are Finally Home!, eHomeAmerica, Freddie Mac CreditSmart Homebuyer U, Fannie Mae HomeView, Framework and Hometrek. A HUD-approved agency’s in-person class also counts. The certificate never expires ⁠². Home in Five accepts only Arizona-based agencies, and online certificates must carry the local agency’s name ⁠⁷.

Applying through an approved Arizona lender, step by step

1. Pick the program for your county

   Statewide, start with Home Plus. In Maricopa County, compare Home Plus with Home in Five Advantage. In Pima County, look at Home Plus, Pima Tucson Homebuyer’s Solution and the MCC. Rural first-time buyers can watch for Arizona Is Home’s 2027 funding ⁠¹⁠⁴⁠⁷⁠¹³.

2. Find an approved loan officer

   The lender must be approved by the Arizona IDA and its master servicer, The Money Source, for Home Plus, or trained for Home in Five. You never apply to the authority directly ⁠¹⁠⁷.

3. Take the education course early

   Finish it before closing, or the loan cannot be sold. For the Tucson-Pima HOME loan, finish counseling before you sign a purchase contract ⁠¹⁠¹³.

4. Gather documents

   Expect pay stubs, W-2s and bank statements. Arizona Is Home files add the Arizona IDA income worksheet and a DD-214 for the veteran exception. MCC applicants send three years of tax returns to CIC ⁠³⁠⁶.

5. Have the lender reserve funds

   The lender locks the rate and assistance in the program portal after you have a signed contract. Home Plus loans must be purchased within 60 days of the lock ⁠¹.

6. Close and keep the second-lien note

   You need it to confirm forgiveness or request a payoff; a Home Plus sale or refinance before year five repays it in full ⁠¹.

If one lender turns you down, you can try another participating lender. The first-time homebuyer grants page compares other states, and other Arizona guides are on the Arizona page.