Updated September 3rd, 2024.
Want to purchase a home but having trouble coming up with a down payment? Housed Home Loans offers several down payment assistance programs3 available in Arizona. While they all differ in rate, terms and guidelines they can help open the door to a new home for many home-buyers.
When it comes to choosing the right down payment assistance home loan program in Arizona, knowing the costs and benefits of each is important. There are multiple down payment assistance options.
- Some programs have income caps while others do not
- Certain programs do not require repayment of assistance funds and others do
- Assistance programs can differ depending on where you are purchasing
Phone: 602.435.2149
Email: Team@JeremyHouse.com
Chenoa Down Payment Assistance Fund
The opens in a new windowChenoa Down Payment Assistance program is available statewide in Arizona including Maricopa, Pinal, Pima and Coconino Counties.
The program provides assistance equal to to 5.0% of the home’s purchase price. Funds can be used toward down payment and/or closing costs. This assistance option uses either an opens in a new windowFHA or USDA first mortgage.
Chenoa offers both a repayable and non repayable assistance option. Furthermore, the repayable option requires monthly payments calculated over a 10 year period at a rate matching the rate on first mortgage. To take advantage of the forgivable option the buyer must make on time payments on the first mortgage for the first 36 months. No monthly payment required for down payment grant during the loan term on the forgivable option making it easier to qualify for.
One major benefit of this program is there are no income caps or limits.
Arizona General Requirements
Eligible buyers for the Chenoa down payment assistance program in Arizona you meet the following:
- No first time buyer requirement
- No income caps (If using USDA loan must adhere to USDA income limits)
- Credit score must be 600 or higher
- Debt to income determined by lenders automated approval
- Home must be your primary residence
- You must qualify for an FHA or USDA loan
- Property types allowed include single family, condo and townhome
- Homebuyer education required for borrowers with a credit score under 640
Phone: 602.435.2149
Email: Team@JeremyHouse.com
Home In Five Down Payment Assistance
opens in a new windowHome in Five is a down payment assistance program available to buyers in Maricopa County, Arizona. This includes the cities of Chandler, Gilbert, Mesa, Queen Creek, Phoenix, Tempe and Scottsdale.
This program provides assistance for down payment and/or closing costs equal to up to 6% of the home’s purchase price. Additionally, first responders, active military, military veterans and K-12 teachers receive an additional 1% in assistance. Furthermore, an additional .5% in assistance is added when purchasing in a low income census tract area.
Additionally, you do not need to be a first time homebuyer to qualify. However you cannot currently own a residence when using the program. This assistance option combines with an opens in a new windowFHA, opens in a new windowVA or Conventional first loan. Home in 5 offers deferred monthly payments for the assistance funds. Grant funds are then forgiven after 36 months on certain Chenoa options.
General Requirements in Arizona
Eligible buyers meet the following in order to qualify for the Home in Five Down Payment Assistance program in Arizona:
- No first time buyer requirement
- Household income cannot exceed $138,600
- Credit score must be 640 or higher
- Debt to income maximum is 50%
- Home must be your primary residence
- You must qualify for an FHA, VA or Conventional loan
- Property types allowed include single family, condo and townhome
- Homebuyer education is required for all borrowers
- Home purchased must be in Maricopa County
Phone: 602.435.2149
Email: Team@JeremyHouse.com
Home Plus Down Payment Assistance
The Arizona opens in a new windowHome Plus Down Payment Assistance Program is available in every County in Arizona making it a great option for all Arizonans looking for assistance with down payment or closing costs.
Home Plus provides a grant equal to up to 5% of the home’s purchase price. These funds may be used to cover down payment and/or closing costs. Grant funds are provided with a deferred monthly payment that is forgiven after 3 years. In other words, you will have no monthly payments and will not owe any of the grant funds once you have been in the home and made on time payments for 3 years.
The Home Plus program is based on a 30 year fixed FHA, VA or Conventional mortgage. In fact, each of these loan types allow you to use the grant funds to cover all of your down payment. However, you may also use the funds to cover closing costs. Conventional loans using Home Plus also provide reduced rate monthly mortgage insurance.
Arizona General Requirements
To qualify for the Home Plus Program the following must be met:
- No first time homebuyer requirement
- Household income may not exceed $136,609
- Credit score must be 640 or higher
- Debt to income cannot exceed 50%
- Home must be your primary residence
- You must qualify for either an FHA, VA or Conventional mortgage
- Property types allowed include single family, condo and townhome
- Homebuyer education is required for at least one borrower
Phone: 602.435.2149
Email: Team@JeremyHouse.com
FAQ: Arizona Down Payment Assistance Programs
Depending on the down payment assistance home loan used you may or may not have to pay your assistance funds back.
No, there are down payment assistance programs for both first time and non-fist time home buyers.
Funds from some down payment assistance programs may be used toward down payment or closing cost.
Typically, yes down payment assistance funds also list a maximum income. That income represents the most in gross income that the borrowers on the loan application can make and be considered eligible for the program.
Yes, veterans using a VA mortgage have access to a down payment assistance program to help with closing costs or down payment.
Yes, often the rate differs on Arizona down payment assistance programs. Check with your lender for more specifics on how the down payment assistance program rate varies as each program is different.
References: Arizona Department of Housing