Arizona down payment assistance in 2026: how Home Plus and Home in Five work

By Daniel Friel, NMLS #2071232 · Published June 10, 2026 · Reviewed September 5, 2026

The down payment is the wall most Arizona renters run into. Plenty of households can handle a monthly mortgage payment that looks a lot like their rent, but saving tens of thousands of dollars while paying that rent is another story. That is exactly the problem down payment assistance programs exist to solve. This guide focuses on Home Plus and Home in Five and also covers Arizona IDA's rural Arizona Is Home offering.

What down payment assistance actually is

Down payment assistance, usually shortened to DPA, is money provided by a state or local housing authority to cover some or all of your down payment and closing costs. In Arizona it commonly arrives as a second mortgage behind the first loan. The terms are not all alike. Home Plus is a no-interest, no-payment second with five-year cliff forgiveness. Arizona IDA's rural Arizona Is Home second is no-interest and payment-free but nonforgivable. Home in Five offers several structures, including an amortizing second with monthly payments and no forgiveness.

One important mechanical point: you do not apply to these programs directly. You apply through a participating lender, who reserves the assistance for you as part of your loan. The Home Plus program states plainly that the first step is selecting your lender, who is your primary point of contact for the whole process. That is the part a broker handles for you.

Home Plus: the statewide program

Home Plus is run by the Arizona Industrial Development Authority and is the state's flagship homebuyer assistance program. According to the current Arizona IDA program documents reviewed September 5, 2026, Home Plus provides up to 4 percent of the loan amount toward your down payment and closing costs, paired with a 30 year fixed rate first mortgage. It is available in every county, city, and zip code in Arizona.

The key facts, per the current Arizona IDA and Home Plus program documents:

• Assistance: up to 4 percent of the loan amount, usable for down payment, closing costs, or both.
• Structure: a soft second mortgage with no interest and no monthly payment, forgiven in full at the 60-month anniversary of the original loan date. There is no partial forgiveness before then, and a sale or refinance inside 60 months requires full repayment.
• Loan types: works with FHA, VA, USDA, and conventional first mortgages, including reduced mortgage insurance options on conventional loans.
• Income limit: the program publishes a single statewide income limit for borrowers, most recently updated April 6, 2026. Your lender confirms the current figure.
• Education: one borrower must complete a homebuyer education course before closing.
• Funding: available throughout the year, never exhausted, and the program has no sunset date.

Unlike capped appropriation programs, Home Plus states that its DPA funding is available year-round and does not deplete. Income limits, product offerings, rates, and borrower eligibility still need to be checked when the loan is reserved.

Home in Five: the Maricopa County program

Home in Five Advantage is offered through the Maricopa County and Phoenix industrial development authorities for homes inside Maricopa County, which covers Phoenix, Chandler, Gilbert, Mesa, Tempe, Scottsdale, and the rest of the Valley. Current program documents reviewed September 5, 2026, advertise up to 6 percent in assistance, with the available percentage and second mortgage term depending on the first loan and current market offerings.

The current program documents list these requirements:

• Assistance: up to 6 percent for down payment and closing costs.
• Credit: a minimum FICO score of 640.
• Debt to income: a ratio up to 50 percent.
• Location: the home must be in Maricopa County, occupied as your principal residence within 60 days of closing.
• Education: an 8 hour homebuyer education course with a certificate of completion.
• Income limit: the program caps annual income; the cap adjusts periodically, and your lender confirms the current number.
• Availability: the 7-year forgivable Advantage allocation was fully utilized June 25, 2026, with no additional funds expected. Other options remain subject to current market availability.

The programs side by side

Which program fits you?

Home Plus is available statewide. Buyers in the 13 rural counties may also qualify for Arizona IDA's Arizona Is Home offering, subject to its county income limits, first-time buyer rule, purchase price cap, and available funding.

Inside Maricopa County you have a real choice, and the right answer depends on more than the headline percentage. The two programs differ in forgiveness terms, income limits, credit requirements, and how each interacts with the first mortgage pricing on a given day. A larger assistance percentage on one program can be outweighed by better overall loan terms on the other. This is exactly the comparison a broker runs for you across both programs and 160+ wholesale lenders, using your actual credit profile and target price range rather than a brochure example.

Arizona IDA's rural Arizona Is Home offering is unavailable in Maricopa County, Pima County, and Chino Valley. The broader state Arizona Is Home initiative also supports separate Maricopa and Pima County offerings, so confirm which administrator and second mortgage terms apply.

Common misconceptions worth clearing up

"I need 20 percent down to buy a home." This one refuses to die. Between FHA, VA, USDA, conventional options with low down payments, and the assistance programs above, plenty of Arizona buyers close with little or nothing out of pocket for the down payment itself.

"All assistance is either free money or a loan I will always repay." Neither description fits every program. Home Plus is forgiven in full after 60 months, provided it is not sold or refinanced sooner. Arizona IDA's rural Arizona Is Home second is nonforgivable and due in full at sale or refinance. Home in Five repayment depends on the selected second mortgage, including options with monthly forgiveness, monthly payments and no forgiveness, or forgiveness only at maturity.

"DPA is only for first time buyers." Several Arizona options are open to repeat buyers as well. The details vary by program and loan type, which is another reason the lender conversation comes first.

"These programs make my offer weaker." Loan timing depends on the lender, program reservation, and required education or compliance review. Confirm eligibility and finish the required steps early so the financing timeline is clear before you submit an offer.

How to get started

1. Talk to a participating lender. Both programs work exclusively through lenders, so the program application rides along with your loan application.
2. Get a real qualification. Income limits, credit minimums, and assistance percentages all get checked against current program matrices in one pass.
3. Complete the required homebuyer education. Home in Five requires every borrower to complete an 8 hour course. Home Plus and Arizona IDA's rural Arizona Is Home program require at least one borrower to complete an approved course before closing.
4. Shop with your budget set. You will know your assistance amount and payment picture before you write an offer.

Program terms, income limits, assistance percentages, and funding availability change periodically. The figures above reflect official program sources reviewed September 5, 2026. Always confirm current terms and availability with a participating lender before reservation. This article is general information, not a loan offer or a commitment to lend.

If you want to know which program may fit and what your numbers look like, reach out or read more about down payment assistance options. A current comparison will show which options are available for your county and scenario.

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