The Down Payment Challenge in Arizona

For many Arizona homebuyers, the down payment is the biggest obstacle to homeownership. Even a 3.5% down payment on a $400,000 home requires $14,000 — and that’s before closing costs. In Scottsdale and the greater Phoenix market, where median prices are higher, the challenge is even more significant.

The good news: Arizona has multiple programs specifically designed to help buyers bridge this gap — and many buyers who assume they won’t qualify are surprised to find they do.

HOME Plus Program (Arizona)

The HOME Plus program, administered through the Arizona Housing Finance Authority (Arizona HFA), is one of the most widely used down payment assistance programs in the state.

How it works:

• Provides a 30-year fixed-rate mortgage paired with down payment assistance of 0%–5% of the loan amount

• Down payment assistance comes as a grant or a three-year forgivable second mortgage (forgiven if you stay in the home)

• Available for FHA, VA, USDA, and conventional (Fannie Mae and Freddie Mac) loans

• No first-time buyer requirement — available to repeat buyers who meet income limits

Eligibility:

• Minimum credit score of 640

• Annual income limits apply based on county and household size

• Debt-to-income ratio within program guidelines

• Owner-occupied primary residence only

Home in Five Advantage Program

The Home in Five program (also called Home in Five Advantage) is available specifically to buyers purchasing in Maricopa County — which includes Scottsdale, Phoenix, Chandler, Gilbert, Tempe, Mesa, and surrounding communities.

Key features:

• Provides down payment assistance of up to 5% of the loan amount

• Available for FHA loans

• Additional assistance available for qualified United States military personnel, veterans, first responders, and educators

• Income and purchase price limits apply

This program is particularly relevant for Scottsdale-area buyers because of its Maricopa County focus and the extra assistance tier for military and veterans.

Pathway to Purchase Program

The Pathway to Purchase program is targeted at buyers in specific Arizona zip codes. It provides down payment assistance for buyers purchasing in designated communities and is designed to support neighborhood revitalization efforts.

If the home you’re purchasing is in an eligible zip code, this can be an additional source of assistance. Mark Merry can quickly check whether your target area qualifies.

Stacking Programs: Getting Maximum Assistance

One of the most valuable things Mark does for buyers is identify opportunities to combine programs — layering a federal loan benefit (like VA or USDA) with a state or local assistance program to minimize out-of-pocket costs at closing.

For example: a veteran purchasing a home in Maricopa County may qualify for a VA loan (zero down payment) combined with the Home in Five program’s assistance for veterans (reducing closing costs). Getting these combinations right requires an experienced loan officer who knows all the programs.

Find Your Down Payment Assistance Program

Don’t assume you don’t qualify. Many buyers with stable jobs and decent credit are eligible for programs they’ve never heard of. Mark Merry reviews every buyer’s situation against available programs as a standard part of the pre-approval process. Call (480) 442-7487 today and let’s find out what programs you qualify for.