Arizona First-Time Home Buyer Grants 2026

For how Arizona compares with other states and the federal options, see our national guide to first-time home buyer grants and programs.

Arizona Down Payment Assistance Programs Compared (2026)

4% is the most HOME Plus gives, and it's figured on the first mortgage balance, not the price. According to the Arizona IDA's HOME Plus lender summary (version 06/2026), the assistance is "a second mortgage loan (not a grant or gift)." Arizona's other big programs are run by county industrial development authorities (IDAs), and each one handles repayment differently.

Sources: Arizona IDA HOME Plus page (opens in a new tab), HOME Plus Program Summary for Lenders v062026 and lender support page (opens in a new tab); Home in Five lender page (opens in a new tab), DPA Guidelines effective June 10, 2026, and program description (August 2025); Pima-Tucson Homebuyer's Solution program page (opens in a new tab) and Administrator's Guidelines; Arizona IDA MCC page (opens in a new tab).

What about Pathway to Purchase? Grantsights couldn't find Pathway to Purchase on any current agency page. It was a 2016 Arizona Department of Housing program for targeted cities, and the department's own site blocked automated reading on November 3, 2026, so this guide doesn't list it as open. Ask a HUD-approved counselor before counting on it.

Stacking rules. The HOME Plus MCC page says an MCC can be combined with HOME Plus but couldn't be combined with Arizona Is Home. Phoenix's Open Doors fact sheet says its loan "can be layered" with other down payment programs. Each IDA program comes with its own first mortgage, so you'll pick one of HOME Plus, Home in Five or the Pima-Tucson program, not two.

Arizona Income and Purchase Price Limits by County

$155,386 a year is the HOME Plus income cap in all 15 Arizona counties, for any household size, effective April 6, 2026, according to the Arizona IDA. The table below covers Arizona's 7 most populous counties and shows the county-level programs that sit beside HOME Plus.

Sources and effective dates: HOME Plus cap from the Arizona IDA's HOME Plus page (opens in a new tab), effective April 6, 2026. Home in Five limits from its Down Payment Assistance Guidelines effective June 10, 2026 (the program's home page still shows an older $153,440). Pima-Tucson limits from its income limits sheet (opens in a new tab), effective for reservations from May 21, 2026 and June 13, 2026. Arizona Is Home limits effective July 1, 2026, from the Arizona IDA's lender page. Phoenix and Tucson price caps from the cities' own pages.

A few rules that change the numbers:

• HOME Plus counts borrowers, not the household. The lender summary says household income "is NOT used" except on USDA loans; only people on the note who'll live in the home count.
• A lower conventional cutoff. HOME Plus, Home in Five and the Pima-Tucson program all give cheaper mortgage insurance on Fannie Mae or Freddie Mac loans only if you're at or below 80% of area median income. Home in Five lists that figure as $89,920 in Maricopa County.
• City programs use HUD's 80% limits. Phoenix's Open Doors limit is $89,900 for a family of four, effective May 1, 2026. Tucson's HOME Consortium sheet uses HUD's 2025 figures, $79,850 for four. For the full HUD tables, see our HUD income limits guide.

How HOME Plus Forgiveness Actually Works

60 months is the line that matters with HOME Plus. According to the Arizona IDA's lender summary, the second loan "will be forgiven on the 5th anniversary of the original loan date. There is no monthly or annual forgiveness before the five-year term." The IDA also says it "does not subordinate to accommodate a refinance."

In practice, that means:

• Sell or refinance in month 59, repay all of it. There's no sliding scale. A $15,000 HOME Plus loan is still $15,000 at four years and eleven months.
• Refinancing is the usual trap. If rates fall in 2027 or 2028 and you refinance, the second loan comes due because the IDA won't move behind a new first mortgage.
• The money can cover more than the down payment. The summary says it can fund "up to 100%" of your cash to close, including closing costs, prepaid items and upfront mortgage insurance. Leftover money goes to principal, not to you.
• Who's on the hook. The DPA is table-funded by your lender at closing and later bought by the master servicer, The Money Source. The IDA's compliance agent, Hilltop Securities, charges a $250 DPA compliance fee, according to the same summary.

Grantsights analysis of the Home in Five program's own published totals ($196 million in down payment assistance across 25,091 homebuyers since 2012) works out to an average of about $7,810 per buyer in Maricopa County. That's a useful reality check: most Arizona help is a few percent of the loan, not a five-figure windfall, unless you qualify for a city program.

Local Programs in Phoenix, Tucson, Maricopa County and Pima County

10% of the purchase price is the most Phoenix's Open Doors program gives, according to the City of Phoenix Housing Department's homeownership page, checked November 3, 2026. At the $470,250 price cap, that's up to $47,025 on paper, though the fact sheet says the amount "is based on need."

Notes:

• Tucson's consortium help is never fully forgiven. The March 2026 fact sheet says only the accrued interest is forgiven once the affordability period ends; the principal is due when you sell. Read it as a 0%-after-the-period loan you'll repay from your sale proceeds.
• Tucson applications go through counselors. The fact sheet says the consortium "does not accept applications directly." The partner agencies are Administration of Resources and Choices (520-623-9383), Chicanos Por La Causa (520-882-0018) and the Pima County Community Land Trust (520-603-0587). You must finish HUD-certified counseling before you sign a purchase contract.
• Phoenix's affordability period depends on the loan size. The city page says it "can be up to 15 years." Ask the counselor for the exact term before you accept the money.

Most city programs like these are paid for with HUD HOME funds; our HOME Investment Partnerships guide explains how that money reaches Phoenix, Tucson and the county consortiums.

FHA, VA and USDA Loans in Arizona

3.5% is the lowest FHA down payment, according to HUD's FHA loans page (opens in a new tab). A 4% HOME Plus loan is figured on the FHA loan amount, so it covers that 3.5% with a little left over for closing costs.

• FHA. All three IDA programs accept FHA first mortgages. Home in Five's government matrix (version 26.2, dated September 23, 2026) caps debt-to-income at the lesser of 50% or the automated approval, and 45% for manufactured homes.
• VA. VA's purchase loan page (opens in a new tab) says there's no down payment if the price doesn't exceed the appraised value. Pima County veterans get a rare bonus: the Pima-Tucson guide tells lenders not to use a second note on VA loans "because the assistance is a Grant."
• USDA. HOME Plus and the Pima-Tucson program both accept USDA Rural Development loans, which fit much of rural Arizona. Our USDA housing guide covers how Section 502 works.
• Tribal lands. HOME Plus and Home in Five both accept HUD Section 184 loans for Native American buyers. HUD's Arizona page (opens in a new tab) lists the state's HUD offices.

What the Arizona IDA Doesn't Tell You on Its Program Pages

3 different forgiveness clocks run in Arizona's main programs: 5 years with no partial credit (HOME Plus), 3 or 7 years with monthly credit (Home in Five), and 30 years (Pima-Tucson). Grantsights checked the HOME Plus consumer page against the IDA's lender summary, the comparison guide and the county programs' guidelines, and five things stand out.

1. "Forgivable" doesn't mean forgiven soon. The HOME Plus consumer page leads with forgiveness, but the lender summary is blunt that nothing is forgiven until month 60. People underestimate how often they'll want to sell or refinance within five years.
2. Arizona Is Home changed under buyers' feet. The 2026 version was "NON-FORGIVABLE," unlike earlier rounds, and then it was retired on October 6, 2026. Older lender blogs still describe it as open and forgivable.
3. The HOME Plus rate floats daily. The comparison guide says HOME Plus is priced in the "To Be Announced" market, where "interest rates can fluctuate daily," while bond programs fix rates at issuance. Lock timing matters.
4. The home page and the guidelines don't always match. Home in Five's home page lists a $153,440 income cap, but its guidelines effective June 10, 2026 say $157,360. Go by the newer guideline and have the lender confirm.
5. Fees still apply. HOME Plus allows a lender origination fee of up to 1% plus a $250 compliance fee; Home in Five lists a 1% origination fee. The DPA can pay these, but it uses up help that would otherwise go to your down payment.

For example, a couple in Maricopa County earning $96,000 buying a $400,000 home with FHA (base loan $386,000, 3.5% down of $14,000) can't use Phoenix's Open Doors, because the 80% AMI limit for two people is $71,950. With HOME Plus at 4% they'd get $15,440, enough for the $14,000 down payment and $1,440 toward closing costs. With Home in Five's 3-year option at 4%, they'd also get $15,440. The difference shows up specifically if they move: selling at month 24 would mean repaying all $15,440 under HOME Plus but only about $5,147 under Home in Five, which forgives 1/36 a month. At month 40 they'd owe nothing to Home in Five and still owe the full HOME Plus balance. For buyers who might move or refinance within five years, Home in Five's 3-year option often works better than HOME Plus, but rates differ between the two programs, so compare the monthly payment too before choosing.

Common Mistakes and Red Flags

$0 is what a real Arizona program charges you to apply. The FTC's government grant scams page (opens in a new tab) warns that no government agency will demand a payment to give you a grant, and Arizona's IDA programs only reach buyers through approved lenders and counseling agencies.

• Red flag: an "Arizona first-time buyer grant" offered for a fee. Every IDA program in the table is arranged through a participating lender, and the Tucson consortium takes applications only through its three counseling partners.
• Common mistake: treating a deferred loan as free money. A $50,000 Tucson consortium loan must still be paid back from your sale proceeds, even after 15 years.
• Common mistake: taking the class after closing. The HOME Plus lender summary says completing education after closing "will result in a non-saleable transaction," which can derail the loan.
• Common mistake: counting on a program that's already out of money. Home in Five's 7-year option and Home in Five Platinum both ran out in June 2026, and Arizona Is Home closed in October.
• Recapture tax on an MCC. If you get an MCC and sell within nine years at a gain with a big income jump, federal recapture tax can apply, reported on IRS Form 8828 (opens in a new tab). You claim the credit each year on IRS Form 8396 (opens in a new tab).
• Wire fraud at closing. Call your title company at a number you already have before you wire any money.

Still renting in Phoenix or Tucson while you build savings? Our rental assistance programs guide lists rent help you can use before you buy.

How to Apply for Arizona Down Payment Assistance, Step by Step

8 hours is the length of the homebuyer course Home in Five and Phoenix's Open Doors require, and HOME Plus requires an approved pre-purchase course before closing. There's no separate state application; your lender reserves the funds.

1. Pick your county's options. Statewide, HOME Plus works anywhere. In Maricopa, compare it with Home in Five; in Pima, compare it with the Pima-Tucson Homebuyer's Solution and the Tucson consortium.
2. Take the course early. The HOME Plus page says it can be online through an approved provider or in person with a HUD-certified agency. HUD's housing counselor finder (opens in a new tab) lists Arizona agencies.
3. Find an approved lender. Each program has its own lender list: the Arizona IDA's for HOME Plus, Home in Five's "Find a Lender" page, and the eHousingPlus list for Pima-Tucson. Not every loan officer is trained on every program.
4. Ask for side-by-side quotes at each DPA level, because a larger percentage usually comes with a higher first-mortgage rate.
5. For Phoenix or Tucson city help, start with a counselor before you sign a contract. Tucson requires counseling before the purchase contract; Phoenix requires one-on-one counseling as well as the class.
6. Confirm the repayment terms in writing before closing: the forgiveness clock, what triggers repayment, and whether a refinance counts.

Arizona buyers new to public paperwork can read how to apply for grants as an individual before gathering pay stubs and tax returns.

What Happens If Funds Run Out or You're Denied

4 fallback routes are open when one Arizona program is closed or says no: another IDA program, a city program, a different loan type, or waiting for a new round.

• Arizona Is Home closed. Rural buyers can still use HOME Plus statewide, which the Arizona IDA points to as the alternative. Whether Arizona Is Home returns in 2027 isn't posted.
• Home in Five 7-year funds used up. The 3-year, 10-year and 30-year Home in Five options are still listed, and HOME Plus is available in Maricopa County too.
• Over the income limit. At $155,386, HOME Plus fits most buyers, and it counts only borrowers' income. Above that, an FHA loan with 3.5% down or a VA loan may be the route.
• Denied on credit. If you're under 620, HOME Plus suggests credit repair before you apply again. A HUD-approved counselor can help for free.
• Already own a home? HOME Plus, the Pima-Tucson program and most Home in Five options don't require first-time status. If you already own an Arizona home that needs work, see home repair grants for low-income homeowners.

Shopping on the other side of the Colorado River? See our California first-time home buyer guide.

For other bills while you save for an Arizona home, the Grantsights free eligibility checker sends you to official sources like benefit screeners, rent help and 211. It doesn't give out grants or down payment money itself.

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Sources

1. Arizona IDA: HOME Plus DPA (opens in a new tab) - up to 4% assistance, 60-month forgiveness, $155,386 income limit (April 6, 2026), education rule
2. Arizona IDA: Arizona Is Home lender support (opens in a new tab) - 2026 non-forgivable terms, county limits effective July 1, 2026, retirement as of October 6, 2026
3. Arizona IDA: HOME Plus Program Summary for Lenders, v062026 (opens in a new tab) - forgiveness rule, 620 FICO, no first-time requirement, no price limit, fees
4. Arizona IDA: HOME Plus and Arizona Is Home comparison guide, v062026 (opens in a new tab) - eligible counties, lien terms, rate types
5. Arizona IDA: Mortgage Credit Certificates (opens in a new tab) - issuer and combination rules
6. Home in Five Advantage: Home (opens in a new tab) - program totals since 2012
7. Home in Five Advantage: Resources for Lenders (opens in a new tab) - June 2026 funding notices
8. Home in Five: Down Payment Assistance Guidelines, effective June 10, 2026 (opens in a new tab) - options, terms, income limits
9. Home in Five Advantage: Program Description (August 2025) (opens in a new tab) - 640 FICO, 1% origination fee, forgiveness examples
10. Pima-Tucson Homebuyer's Solution: Program Highlights (opens in a new tab) and Administrator's Guidelines (opens in a new tab) - 30-year forgivable second, VA grant, no recapture tax
11. Pima-Tucson Homebuyer's Solution: Income Limits (rev. June 15, 2026) (opens in a new tab)
12. City of Phoenix: Homeownership Opportunities (opens in a new tab) and Open Doors income limits, effective May 1, 2026 (opens in a new tab)
13. City of Tucson: Down Payment Assistance Program (opens in a new tab) and fact sheet, updated March 2026 (opens in a new tab)
14. HUD: FHA loans (opens in a new tab), HUD Arizona state page (opens in a new tab) and HUD housing counselor finder (opens in a new tab)
15. VA: Purchase loan (opens in a new tab)
16. IRS: About Form 8828 (opens in a new tab) and About Form 8396 (opens in a new tab)
17. FTC: Government grant scams (opens in a new tab)