Phoenix Down Payment Assistance and First-Time Homebuyer Programs

Phoenix, the capital city and cultural center of Arizona, is known for its hot desert climate, mainly due to its proximity to the Sonoran Desert. However, as the sixth-largest city in the country, it also offers a stunning urban landscape, southwest culture, and several outdoor engagements. Phoenix also provides ample job opportunities, giving rise to new workers and residents within the city.

Are you looking to buy a home in Phoenix? On this page, we’ll break down home buyer programs that will help you become a home buyer.

Down payment assistance programs in Phoenix

Down payment assistance and first time home buyer programs aim to help home buyers make a larger down payment, cover closing costs, or a combination of both. There are several types of home buyer benefits, including grants, forgivable loans, and interest rate reductions and tax credits.

A grant is similar to a scholarship for college. You apply, and if you qualify for the program (i.e. meet all the criteria and the entity still has the money), you can receive funds toward your down payment or for another upfront cost related to your home purchase. 

A down payment loan (or second mortgage loan) is a loan you acquire in order to have the funds for a down payment. Many loan types require a minimum down payment between 3% and 20%. If you don’t have this money saved (many first-time home buyers don’t) then a down payment loan is an option to help you qualify. Some loans are even forgivable if you meet certain requirements like staying in the home for a few years.

Less commonly, some programs come with lower interest rates and tax credits (e.g., mortgage credit certificates) to help lower your monthly payments.

Phoenix Housing Assistance Program

The Open Doors Down Payment Assistance Program aims to support qualifying first-time homebuyers in acquiring an affordable home within the City of Phoenix. The program offers financial aid for downpayment and closing costs to households with income below 80% of the Area Median Income (AMI)

Assistance type: Deferred Payment Loans

Sponsor: Phoenix Housing

Assistance amount: 10% of the purchase price.

Purchase price limit: $428,000

Minimum borrower contribution: $1,000

Eligibility requirements

• Applicants must be first-time homebuyers as defined by FHA
• Applicants must own and occupy the property as their primary residence for the loan term.
• Homebuyers must also participate in pre-purchase homebuyer education and counseling.

Statewide down payment assistance programs available in Phoenix

Home Plus Home Buyer Down Payment Assistance Program

The Arizona HOME Plus Homebuyer Down Payment Assistance Program is a statewide initiative aimed at helping creditworthy renters who qualify for a mortgage but struggle with the downpayment and closing costs associated with homeownership. The HOME+Plus program provides a 30-year fixed-rate mortgage that can be used toward the down payment, closing costs, or a combination of both.

Assistance type: Fixed-Rate Mortgage

Sponsor: Arizona Industrial Development Authority (AzIDA)

Assistance amount: 4% of the home’s purchase price

Eligibility requirements

• The borrower’s annual income must not exceed $112,785.
• All applicants must have a minimum credit score of 640 or better.
• One borrower must complete a homebuyer education course before closing.

The Chenoa Fund Down Payment Assistance Program

The Chenoa Fund Down Payment Assistance program is another statewide initiative that offers 3.5% of the purchase price towards down payments throughout Arizona. This program helps individuals or families in need of down payment assistance but lacks a high credit score that other assistance programs require.

Assistance type: Forgivable Loan

Sponsor: CBC Mortgage Agency (CBCMA)

Assistance amount: 3.5% of the purchase price

Purchase price limit: $280,880

Eligibility requirements

• Applicants do not need to be first-time homebuyers, but they cannot own another home to qualify for the program.
• Buyers must have a minimum FICO score of 620.
• The program may only be used to purchase a home, with no refinancing.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.